Tesla Troubles: Speed Bump Or Early Signs Of Impending Crash

Photo : AFP

Tesla is facing many problems as other car companies catch up, especially China’s BYD. BYD sold 1.76 million cars in 2024, which is 12% more than last year. Tesla sold 1.79 million cars, but this is 1% less than before. If we also count hybrid cars, BYD made more money than Tesla, earning $107.2 billion in 2023, while Tesla made $97.7 billion.

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Tesla is also struggling because of its CEO, Elon Musk. Many people are unhappy with his close ties to Donald Trump and his support for far-right groups in Europe. Because of this, fewer people are buying Tesla cars. In Europe, the number of new Tesla cars registered dropped by 49% in January and February 2024 compared to last year. Investors are also worried, and Tesla has lowered its sales predictions for 2025. Earlier, the company thought sales would grow by 20-30%, but now experts believe sales may actually fall by 5% or even more.

There have also been protests against Tesla in the USA, France, and Germany. In some places, Tesla stores, charging stations, and cars have been damaged. Protesters say Musk is using his power in politics too much. In New York, people held signs saying, “Tesla finances fascism” and asked others not to buy Tesla cars. In Germany, a fire attack at Tesla’s factory in March 2024 stopped production for some time. Musk’s open support for Germany’s far-right party, AfD, has also upset many people.

Another problem for Tesla is that it has not launched new cars for a long time. The last new model was the Model Y in 2020. This is why Tesla is losing market share, especially in China, where buyers want fresh and exciting cars. Tesla’s new Cybertruck was supposed to be a big success, but things have not gone well. The electric truck was delayed for years, and when it finally came out in late 2023, sales were lower than expected. The truck also had technical issues, and Tesla had to recall all 46,096 Cybertrucks on March 20 because some parts could come loose. At the same time, Tesla’s low-cost electric car, which many people are waiting for, is still not available. As more people look for cheaper electric cars, Tesla could struggle without a budget-friendly option.

Even with all these troubles, Tesla still has one big advantage: self-driving technology. Tesla is ahead of many other companies in this area, and the market for self-driving cars is expected to be worth $5 trillion in the future. Some experts say Tesla is doing better than Google’s Waymo, which has had robotaxis in some US cities since 2010. Tesla’s own self-driving taxi, called "Cybercab," is expected to start test drives in Austin, Texas, in a few months.

Tesla could also benefit from new government rules in the USA. The Trump administration is working on new policies for self-driving cars, and Tesla could be in a strong position. The government has also started cutting support for green energy, which might help Tesla in the US market, where it is already a big name.

Many people still believe in Tesla and Musk, but some investors think the company needs a strong leader to handle everyday operations. Some experts say Musk is too distracted with other projects, and Tesla needs better management, especially now when the company is going through a tough time. Tesla’s future will depend on how well it can solve these problems, bring new cars to the market, and keep its strong position in the electric car industry.