The Tesla stock is going down, not a tiny bit large. The stock is at the lowest price since 2016. What makes it worse is that no one is planning to solve the problems of Tesla. So will we all allow Tesla to bleed to death?
The market for electric cars is highly disordered due to government interventions. The interventions are limiting the market the be completely efficient and serve customers best.
Just prior to the beginning of the Tesla stock collapse the USA Congress discussed plans to increase subsidies for electric vehicles.
If we look at one of the problems of Tesla than we need to look at the Visionaire leader: Elon Musk. Elon Musk failed when he was the CEO of PayPal. If we look at the compensation the leader of the Tesla religion receives than we can say it is amazing: his compensation package was over 2,3 billion. 18 Times higher than the highest paid Wall Street CEO.
No one would complain about this if Elon Musk would be a great businessman. But all he is doing is bringing Tesla to the verge of collapse.
We must admit that this is really special. You are bringing a company to the brink of bankruptcy and you get a compensation package of over 2 billion. No bad deal, unless you are an investor in Tesla.
Elon musk vision for Tesla is to make it one of the biggest manufacturing companies in the world. But with the niche consumer base, it is a challenging route.
Scaling up manufacturing capacity is a hard thing to. Many fail. Most successful investors in the auto sector simply stick to serve a niche customer base.
If we look at the near future for Tesla than we see a really bad future. Tesla competition is going to be increased. many experience auto manufacturers are going to release new models.
If we look at the solution for Tesla than we see just another failure from Elon Musk. He is looking for more subsidies. Subsidies which are just paid for by the American taxpayers.
This means that the losses of Tesla are socialized. The complete American society has to pay if he fails. Why he will fail? Can you mention the success of any Elon Musk launched the venture?