With the escalation of the vehicle market, the unpredictable behaviour of Tesla CEO and owner Elon Musk is causing huge risk for the EV automaker. A new survey conducted by Markets Live Pulse showed that 26% of the total 630 global contributors recognise the Tesla CEO as the major concern for the company’s shareholders due to his peculiar and uncertain behaviour.
Matthew Tuttle, the CEO of Tuttle capital management remarked, “Musk is just an unpredictable person, that I would counted among one of the top risks for Tesla.”
In spite of the automaker’s present lead in the electric vehicles market, competitors such as China’s BYD Co. are showing steady growth. According to the analysts, Tesla‘s lead can be easily disrupted because of the government’s policies which aim to persuade its rival automakers to manufacture EVs.
Moreover, 63% of people who participated in the survey want Tesla to continue the reduction of prices in order to gain higher share in the market, which will eventually impact the automakers profit margin. The effect of The latest price cut on On the company’s profit margins will be revealed on Wednesday alongside Tesla’s second-quarter earnings.
In the middle of these issues, Musk led EV automaker Tesla is also battling some fierce competition in the market now. Some industry insiders are also concerned that the hassle over charging technology is likely to push people far away from buying electric cars.
Recently Mary Barra, CEO General Motors, had agreed to follow the footsteps of Ford motor by adopting the charging technology developed by rival Tesla. The deal has led the customers of Ford motors and General Motors access some of Tesla‘s fast chargers. Many surveys indicate that the fear of not getting a suitable charger is holding back a lot of people from buying EVs.
Ford and General Motors have plans to make electric vehicles designed to fit the Tesla plug without any adapter by 2025.
Tesla has also been in talks with other countries such as India to set up factories that manufacture electric vehicles locally after negotiation with the Indian government. Initially, the companies liaison wanted to export cars to India. The factory is likely to have capacity of around 500,000 electric vehicles, according to a report by the Times of India. The company also wants to make India an export base from where it can ship its vehicles to other Indo Pacific countries.
Tesla sees the South Asian country to have a magnificent potential for a future in sustainable energy comprising stationary battery packs, solar energy, and electric vehicles – Musk concluded after having a meeting with Prime Minister Modi, further saying that he also aspires to bring the satellite internet service of SpaceX Starlink to the country soon.
The US-based automaker also launched its first cyber truck at its plant in Austin, Texas after a delay of two years. The idea was revealed by the founder and CEO in 2019 of the reportedly “armour glass” windows’ truck. Ever since the company delayed the production of the cyber truck citing shortages in source equipment and pushing the launch into the current year.
In May, Musk revealed that the company would produce a quartermillion cyber truck depending upon the demand each year. This launch will give Tesla and access to the most profitable segments of the American market and will also make it a rival to electric pickups from automakers like Ford motors and Rivian automotive.
The company looks forward to begin a full-fledged production of cyber trucks from this year onwards.
The company looks forward to begin a full-fledged production of cyber trucks from this year onwards.
Tesla shares at present value adds $288.57 per share.
