Musk’s toughest moment yet as sales drop sharply while rivals speed ahead
Despite the $68 billion loss in two days, what does it really mean?
The headlines claim In just 48 hours, Elon Musk lost $68 billion.
The truth is as follows:
- The market value of Tesla, not Musk’s personal wealth, is what this figure represents.
- After its highly anticipated robotaxi test drive, Tesla’s stock plummeted, depleting the company’s value by roughly $68 billion in just two days.
- Although Musk’s personal fortune did decline, earlier this year there was a reported single-day loss of about $34 billion.
In summary, it has a significant negative impact on the company’s worth in addition to Musk’s personal finances.
European Sales Collapse
For Tesla in Europe, July was a harsh month:
- Germany: Sales decreased by 55% from the previous year.
- UK: A roughly 60% decline in sales.
- Tesla’s sales fell by about 45% in ten of the largest European markets.
What can be worse?
The market for electric cars is expanding overall; sales of EVs are up 9% in the UK and 58% in Germany. While some companies are expanding, Tesla is contracting.
The Reason This Is a Tesla Issue Rather Than an EV Issue
Experts say that this decline isn’t due to a lack of interest in EVs, but rather to:
- Following Musk’s political scandals, which include his open support of Donald Trump, brand loyalty is declining.
- No new low-cost models have been released since 2020, but competitors are introducing more recent, less expensive EVs.
- European consumers were unimpressed by the Model Y update.
Chinese Rivals and BYD Are Gaining Significant Victories
Sales of the Chinese EV giant BYD surged while those of Tesla fell:
- Germany: Sales have increased fivefold since the previous year.
- Sales in the UK have increased fourfold.
Many European consumers are currently looking for stylish EVs at reduced prices, which BYD is offering.
What Experts Predict Will Take Place Next
- In order to attract new customers, Tesla must make EVs more affordable without compromising sales of its more costly models.
- Investor patience might run out if the robotaxi dream is postponed, despite its potential excitement.
- Hyundai, Kia, Volkswagen, BYD, and other competitors are prepared to seize even more market share.
The bottom line.
- Even as the market for electric vehicles continues to expand, Tesla’s sales in Europe are actually plummeting.
- Not Musk’s personal bank account, but Tesla’s market value is at stake in the $68 billion loss.
- BYD and other competitors may overtake Tesla sooner rather than later if the company doesn’t release new, reasonably priced models soon.
Notice: All of the information in this article was verified to be true at the time of writing from reputable, publicly accessible sources. It is possible that the included images do not accurately depict actual events because they are AI-generated composites intended only for illustrative purposes. Sales figures, market data, and expert opinions may all change as new information becomes available.