Tesla by Elon Musk is one of the biggest tech company in the tech industry. Previously, Tesla helps the investors to grow their money with a great amount of return. But the recent price fall of more than 7% in just one day grab the attention of the investors.
This sudden drop in price is creating a fear among the investors. They want to know, What is going on with Tesla? Are their investment secure?
One of the big reason behind it is the new political party launched by Elon Musk, which is the “American Party” This political decision of Elon Musk has made many investor worried. This is because, people are thinking that now Musk will focus on his political party rather than Tesla.
Elon Musk’s talks about politics is so unexpected to the people, and it can make his investors uneasy. They maybe want a CEO who is 100% focused on the future of the company.
This is also the reason for the Dogecoin’s price increase, because people are thinking the new political party of Elon Musk will boost the use of Dogecoin.
But it is not just Elon Musk’s political move causing problems. Tesla is also dealing with some big challenges in the tech market. One issue is the recent changes in government policies in the United States.
A major tax credit which helped electric cars become more affordable is now removed by the government. And this will make it very harder for Tesla to sell cars in the U.S. Because customers will now need to pay more for the cars.
Without the tax credit, Tesla may struggle to keep the company’s sales numbers high.
Recently, more and more companies are entering the electric car market in the global market. Tesla is facing competition from the other car brands like Ford and BYD etc. These companies are selling their own electric cars. And some people already started to choose them over Tesla.
This means Tesla has to work harder on their products to stay ahead. But without the help of the tax credits, now it is more difficult.
When the stock price drops, it is often a sign that investors are getting nervous about the company. In this case of Tesla, the political distractions, fewer tax credits, and rising competition is making the future of the company very uncertain.
Some analysts said that Tesla may face even bigger problems in future, especially if Musk keeps focusing on his politics instead of improving Tesla’s business.
Many investors started questioning whether they should hold or sell before the stock falls even further. This uncertainty is causing the stock price fall.
What is the future of Tesla?
Right now Tesla is facing many big challenges in the market. But, the company is a very big player in the electric car market. And the company has a strong reputation for making innovative cars. Tesla is leading the market of electric vehicle.
If Musk will focus on Tesla and keep the company moving forward with the new inventions, the company can bounce back from this situation.
But now, the focus is on Musk. Whether he can balance his personal political projects with running Tesla. If he does not, Tesla will struggle to regain the believe of their investors and customers.
Tesla’s stock price fall is a mix of Elon Musk’s political distractions, changing tax policies in the United States, and increasing competition in the global electric car market. For now, investors are nervous about their investment in Tesla. So Tesla’s future is uncertain. But if Elon Musk can focus back on his company Tesla, there is still hope for the company’s future.
