tesla's downfall?
Elon Musk Just Set Wall Street Up For One Of His Classic Head Fakes
Tesla is in trouble: sales are falling and competition from China is ramping up. It's clear Elon Musk can't fix the company, it needs a new CEO.
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The Lede
Tesla is on the brink again. Sales are slowing even after the company slashed prices. The company is laying off 10% of its workforce — 14,000 workers from Shanghai to San Jose, from the factory floor to the executive suite. There's only one person to blame for the company's shambolic state and only one person whose exit could save Tesla: Elon Musk. The company is incinerating cash, losing market share, and holding more aging inventory than ever before.
Key Details
- Tesla reported its first-quarter earnings and missed expectations across the board, even though Wall Street was already expecting the worst.
- Tesla's problem is that it has no clear direction. It doesn't matter how much cash a company has on hand if it's blowing it on products that aren't ready to scale — like a robotaxi.
- Being late with product delivery wasn't a problem when Tesla was the only company making good EVs, but that's not the case anymore.
