It is getting worse for investors because of the impact of Musk's purchase. After saying in April that there would be no more TSLA sales, Musk sold 22 million more shares of the company. This year, Musk has sold $23 billion of his company's stock.
Just a few days ago, Musk said that he would benefit from his ownership of the social networking site. Analysts are starting to doubt that will happen. The social network remains a nightmare for investors due to Musk's use of "Tesla as his own ATM machine to keep funding" it, according to a report.
As countries around the world face their own recessions, it isn't necessarily a shock that sales of electric vehicles are falling at the same time. It presents a problem for the owner of the company, who continues to use the company's shares to fund his ventures under the name "X."
The shareholders of the company were promised that they'd benefit from the social networking site. He promised not to sell any more stock from the company. It is up to the investors if he will keep his promise.
Elon is the brand of the electric car company. He needs to pull it together. Some have suggested that Musk has abandoned his duties at the carmaker, and called for a new CEO to take his place.
Advertisers that have suspended their activity on the platform, the failure of Elon's reimagined Twitter Blue, and growing concern around the rise of bigotry on the platform are some of the problems that Insider has reported on.
Despite signs that it won't be the best performer in the group, the rate of return forTesla is expected to do better than its peers, according to a note to clients by the analyst.
The billionaire would cause long-term damage if he didn't do anything about the many issues that arose from his purchase of the social networking site.
The market is concerned. Since the end of October, Musk's stock has fallen by more than one third. The stock has lost half its value since Musk offered to buy the company. Tech stocks lost trillions of dollars in value this year due to a drop in consumer demand, inflation, and the overall market correction from the previous year.
Musk's problems are not the only ones facing the company. The company no longer makes electric cars in multiple countries. Since new entrants have carved out their own market share and traditional automakers have successfully launched a series of hybrid and EV models, there has been a rise in competition in parts of Europe and the US.
The reality of sales didn't live up to what they were projected to be, and that's the reason whyTesla slashed some of its production in China. The EV maker lowered the cost of its cars in China in order to increase sales. It worked, but BYD stole the show.
The Board ofTesla will have to confront some of these issues in the near-term due to more activism and investor frustration. This is a time of truth for Musk.
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