Is the Bottom Falling Out on Tesla?

Iv-olga /
Iv-olga /

The latest Tesla plummet has many asking if the electric vehicle (EV) market here in the US is now showing signs of growing even weaker. Sales for the first quarter of 2024 plummeted 10% from 2023, marking the worst single-quarter decline since 2012. Net income is also down an astonishing 55% since 2023.

Consumer confidence in the Tesla brand has shrunk excessively over the last 18 months, and as such, the stock is down roughly 40% over the past calendar year, according to Google Finance. A change like this is the result of the excruciating reality Tesla is facing. A lack of on-time deliveries and increased competition from Chinese companies has forced them to cut prices and send income down further.

Laying off 10% of their workforce and a major recall of the Tesla Cybertruck due to acceleration pad problems have only complicated the situation. With an unveiling of Elon Musk’s long-promised Tesla “Robotaxi” slated for August, they have a small opportunity to turn sales around. Unfortunately for them, unless the unveiling has something that is truly earth-shattering, there won’t be a real reprieve for Tesla.

Demand for these heavy, disaster-prone fireboxes on wheels is fading even though the liberals are doing everything in their power to force them on Americans. With stories of them malfunctioning, it’s not a huge shocker that Americans just aren’t signing up. Those who do have found themselves unable to get aftermarket parts to make repairing their Tesla cheaper and having problems keeping their vehicle operational following a non-Tesla service or repair.

Let’s not even talk about the initial investment. EVs (and specifically Teslas) have a higher MSRP. And if you want a home charger, that could set you back even further.

Tesla nor any other EV manufacturer is capable of completely stealing away America’s love of gas-powered vehicles. The recharge time, lack of charger network, and distance between repair shops make them impractical outside urban America. Add in their huge problems with an EV in cold weather or when the power goes out, and suddenly, Tesla no longer looks so nice, even at $22 a “refill.”