Tesla’s downfall might very well continue into 2023 if these rumors are confirmed.
Will markets come back from the 2022 bearish trend? Many analysts are asking themselves this question, and the answer is always one: in 2023 we’ll have either a recovery or a recession. Not exactly exciting news, but the market is not giving great responses either.
Tesla, considered one of the most promising companies of all time, has lost steam in 2022 and is giving bad signs for 2023. From being valued over a trillion dollars in early 2022, Tesla lost 65% of its value. Its CEO and owner, Elon Musk, is one of the causes for such a dramatic downfall.
Not only is the Model 2 being postponed, but worrying and excessive discounts are being offered, almost as if they’re rushing to revitalize cash flow.
Elon Musk used to be the world’s richest man, being valued over $340 billion dollars. He was also the second richest man in history, behind only Malian Emperor Mansa Musa. Elon Musk, however, beat another awful record in 2022: the first person in history to lose $200 billion.
Part of the reason Tesla investors are so worried is Musk’s apparent obsession with Twitter. After having bought it for $44 billion (obtained by selling Tesla shares), Musk is currently on a mission to revolutionize the platform. To do so, however, he has to take attention away from his other companies.
Is Tesla still secure?
Elon Musk is not the richest person in the world anymore, but Tesla is not doing much to save the situation either. On Monday, reports showed that Tesla’s Model 2 is being postponed to at least 2024.
Model 2 was supposed to be Tesla’s most affordable car, sitting at $25.000 retail price. “Well, we’re not currently working on the $25,000 car,” Elon Musk said. “At some point, we will, but we have enough on our plate right now, too much on our plate, frankly.”
Being a car manufacturer that relies heavily on few but focused releases, this is terrible news. It means that Tesla will likely only upgrade existing cars like the Model 3, as well as hopefully finishing development of the Cybertruck.
Being unveiled in 2019, after three years the Cybertruck has yet to see the light of day. Many are canceling their pre-orders, increasingly losing faith. Some rumors say that mass production will finally start in mid 2023.
Other signs of crisis for Tesla are their discount offers. US consumers would receive a massive $7.500 discount on two Tesla models if ordered before 2022 ended. Meanwhile, the Shanghai power plant is reportedly slowing down production, maybe also because of the Covid wave rampaging through China.
In short, it’s hard to tell if Tesla will come back to be the safe asset it was. Most likely, its downward trend will continue well into the new year.
