As Elon Musk remains embroiled in Twitter antics, investors are dumping Tesla stock, which has shed about 62% since its high in November 2021.
markets.businessinsider.com
Tesla stock is stuck in its worst sell-off since the company went public in 2010
- Shares of Tesla are down 62% since their peak in November 2021, marking the company's largest drawdown since it went public in 2010.
- That sell-off is worse than the 60.6% plunge Tesla saw in February to March 2020, per data compiled by Yahoo.
- Elon Musk has drawn ire for his Twitter antics, which many Tesla investors see as a distraction.
I have long held Tesla is one of the most overvalued stocks on the market. Tesla makes as many cars in a year as some of the major automakers make in like a month. They build their cars in tents, they have a long history of missed/late payments to their suppliers and other creditors. They have atrocious customer service, customer support, and vehicle support. Their cars build quality is subpar for the amount of money they cost. A lot of their engineering is very poorly designed. As technologically advanced as they are in some respects, they also lack a lot of options you’d expect- Last I checked they still don’t offer a heads up display, 360 camera, cross traffic alert, CarPlay/Android Auto, ventilated seats, augmented reality cameras, power trunk, etc. It was only relatively recently heated steering wheels and rear seats found there way into their cars.
Elon has a terrible history of overpromising and underdelivering… while simultaneously doing some creative accounting. He said in 2018 we’d have true full self driving autopilot and robo-taxis. Still waiting for that LA to NYC road-trip with no driver inputs. The 2020 Tesla Roadster is nowhere to be found. The $35,000 Model 3 has never really existed. The CyberTruck was supposed to be delivered in 2021… now it’s been pushed back (again) until the end of 2023… we’ll see… it’s base price certainly is not going to be $49,000. The Tesla semi allegedly started low volume production a couple weeks ago despite being marketed in 2017… I’m not confident they will be making 50k/yr in 2024. And we have no idea how much it really costs- probably a lot more than the suggested $200,000 5 years ago.
Someone could literally write a book here. Don’t get me wrong, Musk’s vision of EV’s people want to buy has revolutionized the car industry. And of all the EV’s on the market, despite their numerous shortcomings, they’re probably the most practical to own at the moment. But as chargers are added, this will be sure to change.
It’s just funny for me because only a few years ago, any criticism of Musk would result in his army of online fanboys going nuts. Any negative review in the press was a “big oil” conspiracy. I’m wondering where all these people are now…
It’s not shocking people are bailing ship on Tesla… but I suspect it largely has to do with all the wrong reasons- musk’s personally and less to do with factors like the dwindling economy/inflation, solid competitors coming on the market, and that Musk built his company on lies and deception.
And don’t get me started about how they literally sell options on their vehicles for many thousands of dollars that don’t even exist.
To be fair, all the automakers are hurting bad right now. GM down 40% YTD, Ford 45%, VW 46%, Toyota 26%, BMW 15%, etc. But as of this moment Tesla is down 65% YTD, which is just atrocious. Especially when they’re best poised to handle the downturn from high gas prices and supply chain issues.