Last Wednesday, Tesla’s CEO Elon Musk a presentation in which he expressed pessimism about the company’s immediate future, which had a drastic impact on the company’s share price.
Reuters reports.
Toyota: Electric cars take a maximum of 30 percent of the market
Warns of declining growth
Musk warned that sales growth will slow for the year despite the sharp price cuts it has recently introduced, which have already led to reduced margins for the company.
He also expressed concern about how quickly Chinese competitors such as BYD could begin to out-compete established car brands if import tariffs are not imposed.
Elon Musk: Chinese electric cars will “crush” the competition
Will build a cheaper electric car
During the presentation, Musk emphasized that sales growth going forward will be “significantly lower”, as Tesla will focus on a cheaper, next-generation electric car.
The new model is due to go into production at the Tesla factory in Texas in the second half of 2025, and is expected to represent the next big sales wave for the company.
Musk also added that scaling up production of the new model will be challenging, as this will involve a number of cutting-edge production techniques.
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Thousands of billions up in smoke
The pessimistic tone was not met with enthusiasm in the stock market, and by the time the stock market closed on Thursday, the stock had fallen by more than 12 percent.
This means that the company lost around 80 billion dollars, corresponding to more than 800 billion kroner, in value in a single day.
In the last month, the company’s value has fallen by as much as SEK 210 billion, corresponding to over SEK 2,100 billion.
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