Apartheid IsraelIn one year, Tesla stock lost almost 50% of its value before recovering about 20% back. Some may attribute the loss to the general malaise gripping our economy as a result of COVID and inflationary pressure, while others believe Tesla is doomed to lose market share as almost all car manufacturers around the world have already announced, or are already delivering, their own versions of fully electric cars. The fact is that the many reasons why Tesla stock will crash has as much to do with competition as it has to do with Elon Musk buying Twitter and turning it into a circus act.
Both Millennials and Generation X grew up admiring Musk because they admired Tesla. Now, however, that they have witnessed the true colors of this narcissistic man, they are starting to bolt from him as we watch many Twitter employees exit the company in droves risking its future.
It seems that Twitter engineers have watched their counterparts from Tesla dictate to them how to do their job and that did not sit well with many.
MANUFACTURERS DELIVERING ELECTRIC CARS TODAY
From the Americas, to Europe, and Asia, every consequential car manufacturer is already delivering their own versions of an electric car. Some as cheap as $30,000. With renewable energy technology about to take a gigantic leap, electric cars may have longer range than gasoline cars for the same quality and price.
From a market share perspective, more and more people are buying electric cars but so are manufacturers producing many more. How will this impact Tesla’s market share is a scientific journey into stats, analysis, and probabilities. Needless to say that Tesla’s tenure at the top of the mountain may be about to end, which may explain Musk’s diversification strategy into Twitter.
CNN published an article in which its Business section journalists wrote:
It seems that Twitter engineers have watched their counterparts from Tesla dictate to them how to do their job and that did not sit well with many. Because of this technical exodus, it is possible that one hiccup and twitter stops working.
Time will tell how both companies would fare, but we still believe that because of Twitter acquisition and global and serious competition, Tesla stock is going to crash.
TESLA STOCK IS SUFFERING THE INATTENTION
With Musk running Twitter, Tesla is suffering the inattention it deserves. Some major investors are concerned about Tesla engineers leaving to work with Twitter. This, in the end, will not bode well for a company facing so much competition and whose technology remains imperfect.
As of the writing of this Blog, Tesla stock was down. It is suffering the inevitability of neglect although we should not underestimate, yet, Musk’s ability to turn Twitter around.
So far, though, his public style, like firing employees on Twitter and his constant need for attention, are harming rather than helping him rein Twitter. In the meantime, his Tesla jewel brand is experiencing a deterioration of sort as Musk’s abrasive management style is on display for the world to see.
Through it all, Musk seems not to care. Either he is over confident he can raise the earnings of both companies simultaneously, or he is a lucky genius of a fool who has chewed more than he can swallow. Time will tell how both companies would fare, but we still believe that because of Twitter acquisition and global and serious competition, Tesla stock is going to crash.
The Many Reasons Why Tesla Stock Will Crash
