In an attempt to boost sales, Tesla has cut the prices of its Model 3 and Model Y vehicles in China, the US, and Europe. However, investors are skeptical about Musk's strategy to popularize electric vehicles for the mass market. There have been plans for a sub-$30,000 car, but recent reports suggest a shift in focus towards robotaxis. This, along with a recall of nearly 4,000 Cybertrucks due to accelerator faults and a legal battle over Musk's Tesla compensation package, has added to the company's challenges.
Key takeaways:
- Tesla's share price has dropped more than 40% since the start of the year, with Elon Musk's fortune suffering a $61 billion drop.
- Tesla's vehicle deliveries have plummeted, with a 20% decline from the previous quarter, and the company is expected to report a 40% profit drop.
- Tesla has engaged in a price war in China, one of its most important growth markets, and has recently cut prices of its Model 3 and Model Y vehicles in China, the US, and Europe.
- Despite rumors of a sub-$30,000 car, Tesla may be pivoting its focus to robotaxis, a move that has left some close to the company feeling unsettled.