Tesla has had quite the past 12 months, but look back to 2018, and things didn’t look so good. Tesla CEO Elon Musk was sleeping at the Tesla Gigafactory to steer the company through “production hell”; a time where Tesla grappled with delivering their Model 3 vehicle, all while dealing with $10 billion in debt and a credit downgrade. Since these trying times, Tesla has come far, and so have their models. The Cybertruck, new roadster, and Model S 2021 are all new editions that are coming soon. Still, there is one more in addition to these; the Model Y. Model Y is similar to the Model X in that it is an SUV; however, the Model Y is smaller. Just recently, Tesla removed the standard base model of the Model Y from their website.
The reasoning for this appears to be a lack of quality, as Elon Musk tweeted, “I don’t think the range, in many drive conditions, yet meets the Tesla standard of excellence.” The decision doesn’t come as a massive surprise as Elon has said in the past that The Model Y Standard Range was a configuration that would never produce due to the range being “unacceptably low” at less than 250 miles. Whether or not it was in response to this news directly, Monday was a rough day for Tesla; Shares fell 8.55%, tearing through the stock’s 50-day moving average, marking the largest single-day decline for Tesla since October of 2020. When looking at the bigger picture, Tesla has responded to increasing EV market competition by making several models in its lineup more affordable. For example, in Japan, the Model 3 saw a cut in its base price to $40,500, likely to compete with Nissan.
Do you think Tesla will maintain its lead in the EV market or will it lose a significant portion of the market share?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.