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Tesla (Image via Tesla)
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Tesla, once a leader in the market of electric vehicles, now faces a major downfall, trying to guide itself through this tough time. Moreover, the production cut-down announcement of their vehicles in Shanghai has left people worried about the company's trajectory, hitting them with these setbacks when the company faces a series of challenges that adversely affect their performance and current market standing.
Tesla’s stock has experienced a sharp decline since last year, dropping by 31% since the start of 2024. The company’s move to decrease production at its Shanghai plant has worsened investor concerns, causing the stock value to fall even further and lose about $250 billion in its market value.
There has been a constant threat of Tesla in the Chinese market, BYD Auto. The company owned by Wang Chuanfu produces electric vehicles and has seen a surge in its stock prices in recent years, unlike Elon Musk’s Tesla. Berkshire Hathaway Vice Chairman, Charlie Munger said that BYD is “better at actually making things” than Tesla. Berkshire Hathaway had a massive shareholding in BYD Auto but due to the recent US-China tension, they decided to pull out as the market might be affected by it later on.
Elon Musk's Leadership Under Question: Will there be a change in the Administration?
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Within Tesla, there are some internal turmoils regarding the path that Elon Musk follows to lead the company and because of this, the CEO demands the highest voting rights to command through the decision of the board in different matters. Tesla’s recent market plummet has left questions regarding the vision of Elon Musk as his ambitious plans for robotics and AI have yet to materialise, continuing to cast a shadow on Tesla’s ability to grow its automotive business.
Tesla’s current disappointing conditions have left the board members questioning whether a necessary change of Leader is needed. Tesla will try to turn around as they look to keep their promise of innovation and growth. Now the only question that arises is whether Will it be under the leadership and vision of Elon Musk or a new leader. In the face of adversity, the resilience of the company will now get tested as it tries to regain its momentum in the market of Electric Vehicles.
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