Tesla stocks fell to their lowest value in years, as investors are losing their trust in Tesla’s CEO, Elon Musk. Elon Musk has managed to stay under criticism throughout the year, which increased after he closed the deal for Twitter’s acquisition. But because of this deal, investors in his other companies, Tesla and SpaceX, are now worried about his focus on these companies. Musk has spent most of his time managing and taking corporate responsibility for Twitter, leaving little to no time for his other companies. Amid this, Musk has sold a significant chunk of his Tesla shares to raise finances for the Twitter deal, which has declined the value of Tesla shares. But this also created a sense of being ignored by Tesla investors, who are now selling their shares. All these events led to the lowest value Tesla shares have seen in two years, as the market closed yesterday. In fact, since the acquisition of Twitter, Tesla’s stocks lost over half of their initial value before this Twitter fiasco started back in March.
Last week, Elon Musk was in the news after posting a poll on Twitter where he asked Twitter users about his future as the CEO of Twitter. He said that people want him to continue as the head of Twitter or want him to step down from the position. It was surprising for everyone as Musk has paid an exponential amount of his time and money in building his version of Twitter. But his management and controversial decisions just pushed the platform into more chaos than it was, before its acquisition by Musk. The result of the poll came as a yes, which meant that Twitter users want Musk to step down from his position as the head of Twitter. After a day, Musk said that he is looking for a credible candidate to replace him as the head of Twitter and will step down as soon as he finds a suitable replacement. Although this has relieved a massive number of Twitter users, it has severely damaged Musk’s image in the business world. It has created doubts regarding Musk’s management skills which is reflected in Tesla’s stocks, as they are down by over 70% this week.
Tesla is also struggling to keep up with the rapidly developing electric vehicle market, where large and renowned automobile companies have entered the market with their exceptional workforce and resources. Tesla has struggled to match with these companies which are pumping newer models with improved technologies while keeping the price low. On the other hand, Tesla is still struggling to match consumer demand, where the waiting period for Tesla vehicles is ranging from six to twenty-four months. According to the reports, Tesla is planning to reduce the production volume at its China plant, which is its largest production plant. These developments clearly explain such a significant dip in the value of Tesla shares and the fear of investors that Musk is losing his focus on the company, especially when the company needs it the most.
