Why is Tesla being abandoned?

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Oh, Elon.

The Internet’s favorite topic — anything to do with Elon Musk — continues to dominate column space. The current subject of choice is the enigmatic billionaire’s Twitter antics, and I guess that’s no surprise considering some of the craziness that goes on behind the scenes (or, more realistically, in plain sight).


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But I’d like to see another of Musk’s many initiatives, Tesla. The car company took over market It has fought off its highly publicized short-selling skeptics to print meteoric gains over the past few years.

The halcyon days are over, however, and its existence has plummeted from those dizzying heights.

Zooming out to 2022 shows just how much the stock has fallen.

The macro environment is bad

First things first. Blood all over the market. Some shares have been saved, and in that sense, it has nothing to do with Tesla specifically. We have become one A new interest rate paradigm Coincidentally, Tesla went public in 2010 — following one of the longest and most explosive bull runs in history.

As profits are written off at high prices, technology has been hit hard, and investors are realizing things. Little During the stim-season bonanza, Bit is overrated.

I’ve plotted Tesla’s stock against the market to show this. It trades like a highly leveraged bet S&P 500, which is not surprising. However, it looks like it will slide further south than expected in this final quarter. So, did anything happen in October?

Elon Musk is focused elsewhere

And that will be Musk’s latest hobby — teasing the world with every little decision on Twitter. Accidentally taking over another company for $44 billion and inserting himself as CEO isn’t exactly how Tesla investors want their number one man to spend his time.

On October 27 the stock was at $230Th , when Musk appointed himself “Chief Twit” — or as we rules say, CEO. Now trading at $146, down 37%.

However, the enormous — and very public — responsibility of the Twitter CEO may come to an end. Musk had previously told investors he was cutting his time at the company, and last week launched a poll asking if he would step down. 57% voted yes.

He continued, “I will resign as CEO as soon as I find someone stupid enough to take the job! After that, I will run software 7 service groups”

Musk argues that macro is the only reason

Musk argues that the macroeconomic climate alone is to blame for Tesla’s sinking.

As bank savings account interest rates, which are guaranteed, begin to approach stock market returns, which are not guaranteed, people shift their money from stocks to cash, causing stocks to fall.

Elon Musk

But it’s increasingly clear that Tesla is struggling with more than just the macro. Longtime Tesla supporter Ross Gerber recently tweeted, “Tesla stock price now reflects value without CEO. Great job Tesla BOD (Board of Directors) – Time for a shakeup”.

That further betrays Tesla’s lagging performance compared to other automakers, including American electric truck maker Rivian and Chinese electric vehicle and battery maker BYD.

Final thoughts

The numbers show that Tesla is clearly underperforming — as Twitter spooks the market. But the other factor in all of this is that Tesla has taken on an almost mythic quality during the pandemic, the symbol of the Robinhood trader who uses the trigger-check, a quasi-meme stock.

Its valuation pushed unfathomable levels to begin with, and 2022 has brought all kinds of challenges. Gone are the days of meteoric tech stocks, no more memes, and interest rates have been at 0% for too long.

Tesla has been fighting many battles, and they are not easy.



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