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Tesla Is In Immense Trouble and Musk Knows It
Things aren’t going well for the EV juggernaut.
Musk and Tesla have enjoyed a meteoric rise over the past decade, during which time they became giants in the automotive world. This growth seemed set to continue for yet another decade as competitors struggled to catch up, making many believe that soon Tesla would wholly dominate the world of transportation. But recent concerning shifts in the foreign EV and stock markets have shaken this narrative apart, exposed its profound weaknesses, and painted a far grimmer future for Tesla. What’s more, Musk’s recent actions suggest that he knows about this unfortunate reality. So, what’s going on with Tesla?
Let’s start with China. China has enjoyed a similar rise to Tesla over the past few decades and is now one of the largest automotive markets in the world. China is also rapidly adopting EVs, making it one of the most important markets for Tesla. For a while, Tesla sold well in China. But now they are being outdone by local competition.
For example, a Model 3 Standard Range Plus with a range of 275 miles and a 5.3-second 0–60 mph time costs the equivalent of $48,000 in China. But the base model BYD Seal (which is the same size as the Model 3) offers over 300 miles of real-world range for only the equivalent of $31,000! Moreover, a $42,000 version of the Seal can manage 0–60 mph in only 3.8 seconds. Then there is the Zeekr 001. Not only can this car charge twice as quickly as the Tesla Model 3, but it can also do 0–60 mph in 3.8 seconds and has a massive 435-mile range, all for only $48,000. There are also similarly spec’d and priced EVs from XPeng and NIO.
With competition like this, it’s no wonder Tesla is having a hard time in China. Thanks to these fierce new rivals, Tesla missed its 2022 Q3 revenue targets by $500 million and has dramatically missed its 2022 Q4 delivery target.
To remedy this dire situation, Tesla recently slashed its prices in China. The Model 3 SR+ now costs 30% less at the equivalent of…
