Is Tesla’s Dominance Fading? A 59% Sales Decline Raises Red Flags
Bloomberg has reported that Tesla's sales in Germany have plummeted 59% in January. The electric car giant registered only 1,277 new cars in January - this is its lowest month since July 2021.
Why do I think this happened?
Whether you support one side or the other it is no secret that Elon Musk has made himself very prominent in US politics. Whether you like Elon or dislike him when you take an extreme stance in politics, it is important to realize that your company can suffer as a result. Elon saw this with his company, Tesla, and it was not only in Germany. Tesla's sales in France and the UK also started to decline.
The sudden drop is not all due to politics, however. Tesla is coming out with a new model Y which is forcing them to change over assembly plants leading to halt in production. It is important to notate that the company posted its first loss in over a quarter.
Should You Invest?
As always, it is vital to do your own research. The risk of investing with Tesla, in my opinion, lies with the CEO. He is no stranger to exercising his right to freedom of speech and you can find many examples online. Although this is not illegal, people will always have an opinion on it and the market will reflect. Tesla may be risky to invest in due to his unpredictable nature. I do not believe the cars will disappear, but auto makers are becoming more advanced and starting to move into the EV sector which puts Tesla into a fighting battle. If other auto makers master the EV and Elon says something that is not taken well, I could see the stock having some trouble.
As always, feel free to leave your thoughts, feelings, and opinions below!
Add comment
Comments
I think Elon has a great mind, and he is inspiring. I also think the decline in sales is okay with him as he isn’t concerned about making money. He just wants to make the best product available and Tesla can continue to do that in the long term. Buying opportunity? maybe.