‘Magic show’ to hide Tesla having ‘problem’?

Recently, Elon Musk has continuously attracted attention with statements related to many areas, from the US economic recession, Tesla’s work-from-home policy or the acquisition of Twitter. However, according to Business Insider, it is all just a “magic trick” of the richest billionaire in the world.

When Musk was so worried that he had to act like this, it couldn’t be ruled out that something was wrong with Tesla. In 2018, Musk caused a stir when he announced on Twitter that he would take Tesla private at a stock price of $420. After that, Musk was sued and had to pay a fine of $ 20 million and resign as Tesla chairman for his “false and misleading” statements.

According to Business Insider, if there’s one thing that’s making Musk feel extremely bad right now, it’s the threat to his huge fortune.

As the largest electric vehicle company in the world, Tesla still has many problems. The company has several times failed to launch new cars on time, failed to deliver on time or overestimated the capabilities of the product. In the nearly two decades since its founding, Tesla has been profitable for two years, and Musk himself once admitted he had to “bet the company”.

Elon Musk acts erratically: 'Magic show' to hide Tesla is 'problem'?  - Photo 1.

Billionaire Elon Musk (Photo: Internet).

One of them was in early 2018, when Musk spent billions of dollars turning Tesla’s Fremont factory into a “terrible machine” that could produce cars without human involvement. This has been warned by the auto industry that it won’t work. And that is indeed the case.

In the spring of 2018, Tesla had to recruit workers massively for production. But this led to the company quietly laying off 9% of its workforce in June 2018.

During that time, Musk displayed many erratic behaviors. He insulted a Wall Street analyst during a Tesla call with investors, taking to Twitter to provoke many journalists. In addition, Musk also introduced the Boring Company’s first tunnel. All of this is said to be Musk’s way to distract public opinion and when Tesla “has something”, Musk has such strange behaviors.

The first half of 2022 is a rather bleak time for Tesla. Suffice to say, the market has turned against the rapidly growing tech companies, sending shares of Tesla – the “golden child” of Silicon Valley for the past 15 years – down 40% since the start of the year. The fact that Musk wanted to buy Twitter didn’t make the situation much better because investors realized that Musk was interested in something else, not Tesla.

Tesla’s share price also reflects the fact that the company is facing real competition in the US market, especially Forbes. Meanwhile, US President Joe Biden seems to be very enthusiastic about helping electric vehicle manufacturers, except Tesla. In Europe, Tesla has lost market share to the likes of Renault, Hyundai and Volkswagen.

One analyst says Tesla’s profitability still needs to be looked at. Based on financial records, this person said the company’s US business is not as “sparkling” as people think. Without the proceeds from the sale of carbon credits to internal combustion engine carmakers and the income from the China operation, Tesla’s US operation would have lost $2.4 billion last year.

In the Chinese market, Tesla’s production was also affected by the government’s application of Covid-19 prevention measures, causing the company’s factory to temporarily close for a while.

Besides, Beijing is also boosting spending in the economy, even reducing taxes for those who buy electric cars worth less than $45,000. Tesla’s problem is that its most famous car – the Model Y, costs nearly $50,000 while the Model 3 ($42,000) is suffering from a decline in sales in China. On the other hand, sales of Chinese electric vehicle manufacturers with much cheaper products, such as BYD, are on a strong upward trend.

Source: BIEN

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