Who is Going to Want to Buy a Car from Elon Musk Now?
Tesla has been a huge tech phenomenon for a while now. This is the company that basically made the idea of an electric vehicle cool again. Tesla is not only a high-profile carmaker but a company that also specializes in battery energy storage and clean energy sourcing. Tesla garnered a huge fan base, not just because of innovations like the Model 3 but also because of the fascination with the company’s CEO, Elon Musk.
Musk captivated audiences with his vision of “changing the world.” Since we were introduced to him, his ingeniousness has been linked to numerous controversies. Musk often speaks out of turn and goes on tirades regularly. Up until this point, Musk’s tantrums didn’t do much to tarnish his brand. Now, Tesla stocks are dropping as more people start to see Musk as unstable and reckless.
The thing about Musk is that he’s synonymous with Tesla; you can’t separate the two. So if he falls, Tesla might just go down with him.
The questionable behavior of Elon Musk
There’s a lot to unpack here when it comes to Musk’s behavior, but let’s start with his most recent antics. Since the beginning of the coronavirus pandemic, Tesla and Musk have consistently been in the news. Some of the controversy surrounding the two comes from how Musk handled government-mandated shelter-in-place orders back in March.
Musk considered Tesla as an “essential business.” Because of this, Musk decided not to close Tesla’s Fremont, California plant, even as every other carmaker halted production. This decision made Tesla appear as insensitive, and that the company was putting employees at risk unnecessarily.
Then came April. Tesla saw impressive sales in the first quarter, even amid numerous COVID-19 related challenges. The carmaker actually had its best first quarter ever, and Tesla stock rode by 17 percent. At this point though, Musk was growing increasingly angry about the government’s shelter-in-place orders.
On a recent Tesla earnings call, Musk dropped tons of expletives, called the U.S. government fascist, and demanded the government end the shelter-in-place orders. Needless to say, the actual Tesla earnings was the least memorable thing about this call.
Tesla’s stock goes down and other Musk milestones
Now in May, there are no signs of Musk chilling out. Instead of riding off of Tesla’s most recent achievements, Musk decided to go on Twitter and announce that the company’s stock was too high. Musk’s announcement almost instantly made Tesla’s stock fall by about 10 percent.
After the stock fiasco, Musk made the major headlines again with the arrival of his son, whose name we are just going to leave alone for now.
Musk also just wrapped up his battle with the state of California after suing for its lockdown orders. Since Musk threatened to take business elsewhere, the local government ended up allowing Tesla to resume production officially.
The future of Tesla
Predicting the future of Tesla is hard to do right now but experts are forecasting that the company could die off soon. It’s pretty clear though that the electric vehicle giant is starting to lose its appeal, and Musk is playing a huge part in this.