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What's going on with Tesla? 6
Last week, Tesla announced that first-quarter electric vehicle sales decreased by 20% compared to the same period last year.
The American electric car company said that China’s economic weakness, factory problems in Germany and supply disruptions due to conflicts in the Middle East are the reasons why its sales have dropped.
However, analysts commented that Tesla’s problems are not entirely due to these factors.
In the US, electric vehicle sales have slowed recently, but the past two quarters have been flat, according to estimates by the world’s leading car service company Cox Automotive.
When looking at the data more closely, Cox Automotive found that the emerging problem was that Tesla cars were becoming less attractive.
`When you look at the data, the biggest drag factor is Tesla’s decline,` Valdez Streaty said.
Elon Musk got in a Tesla car when leaving a hotel in Beijing in May 2023.
From the first quarter of 2023 to the first quarter of 2024, US electric vehicle sales increased by 15%, according to Cox Automotive.
Last year, the US electric car company’s shares increased 38% compared to 2022, lower than investors’ expectations.
Since the beginning of the year, Tesla shares have fallen by nearly a third, as sales and profits disappointed.
Tesla cars accounted for about 56% of cars sold in the US last year.
Tesla Model 3 and Model Y – the company’s two most popular products to date – have been launched for 7 and 5 years.
`Tesla’s two core products are both excellent. But the market is currently flooded with new models. Choices from competitors are slowing demand for Tesla cars,` Valdez Streaty said on CNN.
The Tesla Cybertruck electric pickup is a new product.
Chinese car manufacturers, such as BYD, are a major threat to Tesla globally.
Tesla Motors was founded in 2003 by Martin Eberhard and Marc Tarpenning, with the ambition to transform the auto industry.
Another reason why Tesla’s sales are going backwards may be their CEO – Elon Musk, which makes some people not want to buy Tesla cars, even though they are good cars.
Elon Musk is famous for his impulsive statements, CNN said.
A survey by Caliber – a Danish company specializing in research on reputation management – shows that Tesla’s image has seriously degraded since the beginning of 2022. This is the year Musk made noise because of his purchase of Twitter.
Caliber’s data does not show a clear connection between Musk and the electric car company’s business situation, but this also shows that customers are gradually losing sympathy with Musk.
Both Musk and Tesla scored fairly low on `reputation and likability,` according to Caliber’s research.
As the market has more and more products with similar prices and quality, the image Musk builds may have a big impact on Tesla’s business.