In addition to its business challenges, Tesla is also facing increased scrutiny from regulators. The company has had to recall 2 million vehicles due to technology inviting driver misuse and nearly 4,000 Cybertrucks due to faulty accelerator pedals. Several lawsuits threaten to cast its technology in an unflattering light, which could be a major blow for a company that is staking its future on a fully autonomous car. Furthermore, Musk's controversial reputation and his hard-line immigration ideals, antisemitic rhetoric, and conspiracy theories are causing consumers and investors to sour on him.
Key takeaways:
- Tesla is facing a complex array of challenges that threaten its business outlook, including falling sales, stiff competition from China, and uncertainty over its prospects.
- The company's stock has been hovering at a 52-week low and it is bracing for a sharp decline in operating profit and revenue in its first-quarter earnings report.
- CEO Elon Musk's controversial reputation and his acquisition of shares in Twitter have raised concerns among investors and consumers, some of whom have reduced their positions in Tesla.
- Regulators have increased scrutiny of the company, leading to recalls of millions of vehicles due to faulty technology and accelerator pedals, and several lawsuits threaten to cast its technology in an unflattering light.