Tesla In Danger Of Losing Its Way

Having seen a billions of dollars loss on X Twitter since he parted with mega billions, Elon Musk has now chosen to dance with the devil, and as we all know, the devil always demands a very high price indeed.

The Tesla lynchpin owner has now decided to go a lot further than allowing Donald Trump a voice on X Twitter, he has actually turned the social media platform into a propaganda platform for the presidential candidate.

Such a bold and ill-advised move does not augur well for X Twitter or Tesla, for one very good reason. Well over fifty per cent of X Twitter members are dedicated Democrats. Forty per cent of Tesla buyers are also educated Democrats. So it surely is not the best idea to have a big dig at the very people your companies need so desperately the most.

In 2022 Musk paid $44 billion for Twitter, only to see it drop to a present-day valuation of $12 billion. To make matters worse, in the second quarter of 2020, X Twitter made only $144M in revenue, compared to $661M for the same quarter in 2022 before Musk took over. It has been calculated that, including a figure for inflation, the total loss amounts to a drop of 84% in value in just two years! Tesla bulls are now fearing that to make good the shortfall Musk will have to liquidate Tesla stock, bringing its value down for all investors. It gets worse. For the second quarter this year, Tesla sales are down by 5%, which although not a massive drop, has for certain set alarm bells ringing in home financial markets, if not beyond.

Speaking confidentially with a Tesla would-be buyer he told me…

“When I decided to buy an EV, Tesla was the first I looked at. But I must say that I have never seen a car with such low production quality. Worse than a Trabant from GDR 50 years ago. They simply lack quality, outside and inside. The software as we know is horrible. And then the handcuffing universe of Tesla, such as Apple who handcuffed their clients to perfection. No, Tesla is by far contrary to everything I want. I made my decision and am very happy with my EV. But I won't tell you which one, I have no energy to discuss whether it's a real pony or not.”

How widespread is this opinion about Tesla's quality is not known. However, expensive car buyers can be a fickle crew and if word gets around that Tesla’s are not cutting it on quality, it won’t be too long before there are even bigger drops in sales with a hefty financial effect on the bottom line. This could all be the beginning of the end for the golden touch poster boy, so-called millennium visionary, Musk has enjoyed being portrayed as, to become the man who tried to fly too high, got caught in the Devil’s wings, and fell to earth.