Tesla has seen a nearly 70% devaluation in the past year as it consistently fails to meet its deadlines.
- Electric-vehicle (EV) producer Tesla has seen a 69.1% year-to-year devaluation.
- The devaluation reflects Tesla’s failure to meet its expansion goals, producing 405,278 vehicles of the 420,760 it promised to deliver—missing its target by 15,000.
- Musk has appointed former China Chief Tom Zhu to lead U.S. assembly plants and guide the global teams following his successful leadership in rebounding the Shanghai Plant.
- For the first time, Tesla has announced discounts on the sale of its vehicles.
Why It’s News
Tesla remains one of the leading developers of EVs in the world, with many significant innovations like its cybertruck and semi-trucks nearing completion. As the U.S. and the European Union push for domestic EV production from other developers, Tesla is losing its market share.
The car market, as a whole, is slowing down, and a decreasing portion of a decreasing market share means that Tesla is in a position where it can expect decreasing demand. Analysts are predicting that the company will never reach its goal of 50% growth and that growth is likely to decrease yearly going forward, Bloomberg reports.
Weakening demand and scaled-back production hurt the company’s promised deliverables, adding to an overall sense from investors that the company is being operated without a clear vision or push. The most recent fourth quarter delivery failures mark the third consecutive quarter of unfulfilled promised goals.
Tesla CEO Elon Musk has been consumed with his other business ventures over the past year—causing concern among Tesla investors that he is ignoring this business. He recently purchased and has been actively involved in the operations of Twitter. His SpaceX rockets have been busy supporting NASA efforts.
What’s more, for a luxury car maker that has succeeded in large part because of price elasticity among customers, it recently had to cut the price to attract new customers.
As we previously reported, investors have been speaking out against owner Elon Musk and pushing the brand to distance itself from the owner as his reputation is consumed by Twitter drama.
His supporters say that Tesla remains a solid company with a leading product, and it is the leading EV maker at the ideal moment, when the public has begun to embrace the new technology.