On April 1st, Elon Musk tweeted that Tesla has gone completely bankrupt as an April Fool's day joke. Unfortunately, this is close to being true. At the end of February, their shares decreased by approximately 16% due to a death using the autopilot feature, which then raised questions about the safety of the system. Things also got worse at the end of March. About 123,000 older vehicles were recalled due to corrosion of a bolt that have an effect on the steering and parking. It is not helping that Musk is only releasing expensive cars. Although Musk did make it known that he will mass produce cheaper cars. On the topic of releasing cars, Musk had a goal of producing 20,000 Model 3S cars per month, but ended up only producing 2,500 in the final quarter. High expectations of the Tesla brand transformed to low expectations from analysts and investors. In conclusion, Tesla's shares are well below where they were last year. "Car Biz is hell."
https://www.economist.com/news/business/21739981-road-ahead-elon-musks-car-company-looking-more-perilous-tesla-heading-cash
5 comments:
This decrease in stock prices is particularly interesting because so many people believed that Tesla would take off and take over the market. However, because the technology that Musk was proposing is so different from what we are used to and potentially dangerous as we can see by the recent fatality it makes sense that analysts foresee an even further fall in stock prices.
Its just like Musk to joke about the fact that his company is not doing well. However these facts are very concerning for the company's future outlook. Musk needs to be able to handle these problems in a very delicate fashion in order for the company's image to recover. Especially since these cars are expensive buyers need to be able to trust that they are getting quality for the price. It will be interesting to see what he does to repair the company and how the company does in the future.
Tesla is a great company. What they are doing is never done before. They are innovators so they would face a lot of problems. The security problem is the most strict and serious problem in the car industry. Since the autopilot caused death, their stock price would decrease for sure. I hope Tesla could do better for the safety issue. That's the most important problem and the biggest challenge for Tesla company.
Tesla must quickly figure out their production deficiencies if they want to maintain market superiority. This current flounder is allowing other car brands a chance to catch up in the electric business which will hurt Tesla’s viability in the future.
Tesla must quickly figure out a solution and to decide whats best for the company moving toward. They are a great company and i would be sad to see them stop innovating in the future if nothing changes.
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