The electric vehicle industry continues to be volatile. As of the writing of this article, Tesla’s stock value has had a serious drop. Further, it’s not likely to stop anytime soon. But, why has this happened? Here, we examine the David and Goliath-esque tale of how this EV juggernaut fell…
Tesla CEO, Elon Musk is a prominent and polarizing figure in the court of public opinion.
Yet unlike his other venture — X, formerly Twitter specifically— this downtrend has little to do with Musk’s hot takes.
IN THIS CASE, THE TESLA STOCK DROP IS BUSINESS — NOT PERSONAL.
Shares in the electric vehicle company lost value as a direct result of its Q2 earnings report. The report revealed that Tesla’s profit was down 45% year-over-year.
The market responded accordingly.
Then the situation was further exacerbated by setbacks in one of Tesla’s biggest projects to date…
Declining Profits and Competiton Drive Tesla Stock Drop
This month, Tesla was due to reveal the initial design for its driverless taxi. However, Musk announced that this would be delayed until October.
At the same time, Alphabet has invested $5 billion in robotaxi company, Waymo which already has driverless taxis in service.
Add that to less-than-stellar EV sales and the Tesla stock drop is no surprise. As more brands add electric cars to their rosters, Tesla must level up their game.
After all, if you aren’t expanding your business, you’re falling behind…
Be Great,
GCTV Staff
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