|Tesla's Quality Is A Problem|
Of course, Musk predicts the Model Y will sell better than the Model S, Model X and Model 3 combined saying, the crossover will have “the functionality of an SUV, but ride like a sports car.” The long-range version of the Model Y, with a battery range of about 300 miles, will have a starting price of $47,000. A less-expensive standard-range model will be available in spring 2021 for about $39,000. Some Tesla watchers speculate the new model could further weigh on current Model 3 demand as some consumers may decide to wait a little longer so they can purchase a Tesla crossover vehicle. This comes as the introduction of a cheaper Model 3 could also dent Tesla’s overall margins.
|Tesla Appears On A Mission To Self-destruct|
While his vision and what many people still see as "top-notch" engineering had merit, Musk has failed to execute his mission to build a quality vehicle. This has been particularly true when it comes to the lower end of the price spectrum. Mass producing an automobile is no easy or small task. Many large experienced companies have failed to stay competitive in this cut-throat industry where any misstep has massive ramifications. One of the biggest problems Tesla faces is that it is poorly managed and seems to be making up its business plan on the fly and missing deadlines. This means broken promises to those buying their cars.
|High-profile Tesla Crashes Have Been Noticed|
Government subsidies may have caused buyers to be a little bit more forgiving in the past but as they end and competition picks up those who have supported Elon Musk and Tesla seem to be leaving in droves. With over 100 different electric cars expected to hit the market by 2025, Tesla's problems are about to become overwhelming. Many of these "Tesla crushers" are just months away from hitting showrooms. These new introductions into the rather small electric car market add to the long list of the problems nibbling away at Tesla's credibility and affecting future sales.
Ironically up until now, Musk's greatest strength may have been that so many investors doubt his ability to perform. This means that a slew of impatient clowns have shorted Tesla stock in search of quick profits. Like Musk, these bearish investors have continually shot themselves in the foot at every opportunity. They do this by constantly finding reasons to rush to the exits in short covering panics that invariably brings the share price back up. Each time this happens Musk rushes to claim the stock price as proof all is well, however, after his run-ins with the SEC this also may be about to end. Over time it is likely both Elon Musk and the value of Tesla will continue to dwindle, decline and diminish.