Even after the price cut of Tesla vehicles, his days are not improving. Image Credit source: Twitter
We all know that ever since Elon Musk took Twitter in his hands, his policy keeps on changing every day. First, Elon Musk started Twitter Blue Subscription to increase the company’s earnings, then took a ‘U-Turn’ on it for celebrities. Some similar situations are of his electric vehicle company Tesla. Where is Elon Musk stuck?
First of all, if we talk about Twitter, then Elon Musk introduced the ‘Blue Tick’ subscription plan. It was to be implemented from April 21, but within a day or two, he had to take a U-turn on his decision. The blue ticks of stars like Shah Rukh Khan, Amitabh Bachchan and Alia Bhatt disappeared. Later Elon Musk had to say that those whose number of followers is more than 1 million i.e. 1 million, they will get blue tick for free. Twitter’s investors are terming it as ‘duplicity’ of Elon Musk.
Tesla is in bad shape
Now in the meantime, if we look at the situation of Tesla, the share price of the company has fallen by about 22 percent in the last one month. It was at $207 on March 31, in which trading started at $152.60 on April 28. Although it has now closed at $ 160.67.
Nevertheless, in the last one month, Tesla’s market valuation has decreased by $ 140 billion. It has now come to a standstill near $500 billion, whereas a month back it was also more than $650 billion.
Decreased profit, did not increase sales
Tesla started cutting prices of its models in 2023 to increase its sales. It was expected that this would help in increasing the sales of the company. The company’s entry-level model has become less than $ 40,000, which was earlier around $ 62,990. Similarly, Model S and Model X also became cheaper by up to 20 percent.
Due to this, the company made a new record in the delivery of the company’s vehicles in January-March, but it was going to bring a huge loss in profit. According to the figures till March 31, Tesla produced 17,000 more vehicles than the number of vehicles it delivered. At the same time, the company’s profit decreased by 24 percent during this period as compared to the previous year.
Why are the customers not reaching?
Analysts believe that China’s economy is going through a phase of slowdown. It is the largest car market in the world. That’s why there is no significant growth in the sales of the company after the price cut. At the same time, Tesla has not been able to enter an aspiring market like India. On the other hand, Wall Street ie America’s stock market is now underestimating its target price after Tesla’s margin reduction and profit decline.