The decision to purchase Tesla Stocks now largely depends on its CEO, Elon Musk’s actions, and hence we have made some Tesla Stock Predictions to know about its future.
The charismatic CEO of Tesla has been involved in too many controversies of late even though most investors perceive him to be a heroic leader in disruptive innovation which has aided the astronomical growth of the company. However, it’s obvious the investors are suffering because the CEO has violated the social norms on which the business depends.
Since April 2022, when Elon musk declares his intention to acquire Twitter, Tesla stocks lost their value by over 62% with much of that decline coming after his rude disposition by welcoming the anti-woke crowd back to his social network.
Musk’s distraction with Twitter finally pays off to analysts who bet against Tesla stocks. According to the wall street journal, those traders enjoy $17 billion in gains in 2021.
A few reasons that will be discussed in detail below why Tesla stocks will enrich future investors are:
- Twitter CEO Elon Musk’s hate speech is turning customers off
- EVs are bought from rival companies
- Tesla is offering discounts to boost unit sales
- Tesla stock is way too over-valued
Future of Tesla Stocks: Twitter CEO Elon Musk Hate Speech Is turning Customers Off
Really it is obvious that human irrationality can overpower logic because a charismatic leader can easily compel people to take actions that make no economical sense.
Elon Musk has successfully turned the power of systematic irrationality on himself, if not so how can we understand that the foremost world’s wealthiest man would spend $44 billion on a money-losing messaging system and then set about making some questionable decision like the sacking of half of it employee while turning it into a platform for hate speech which has made unconducive for the entrepreneur.
However, Elon Musk’s charisma helped to influence the rise in demand for Tesla vehicles by using Twitter. He used it to project himself in the business world, saving Tesla a considerable amount to be spent on marketing.
For instance, in 2021 Tesla’s marketing expense per vehicle sold was $0 compared to $468 for ford according to Visual Capitalist.
Really the conduct of Tesla’s CEO who has sold $39 billion worth of Tesla stocks since November 2021 displayed since April 2022 when he signed a merger contract to acquire Twitter and today is turning people who own Tesla stocks.
Future of Tesla Stocks: Customers’ Opinion on Tesla cars
A case scenario is John Blumenthal who bought a Tesla to help the environment and now wishes he never own it. According to the Los Angeles Times, Blumenthal’s friends convinced him to dump his gas guzzler for a Tesla to cut his carbon footprint.
Blumenthal is not the only columnist to point out the negative side effect of musk’s Twitter tenure as chief Twit, Paul Krugman said the exceptionally steep plunge in Tesla’s stock to Musk’s purchase of Twitter’s self-immolation of repute which follow according to the New York Times.
Krugman who really is in doubt about Musk’s personality argued that Tesla sales have surely depended on the perception that Musk himself is a cool guy.
Future of Tesla Stocks: EVs Are Buying From Rival Companies
Krugman went on to emphasize that Tesla does not benefit from network effects that compel customers to buy from top technology companies like Microsoft or Apple.
The lack of network effect by Tesla means people like Blumenthal are not prevented from selling their Teslas and buying other EVs that are not tainted by Musk’s support for hate speech on Twitter, with also Tesla’s relatively high prices and the pain of high inflation customers are happy to buy EVs from other vendors.
Future of Tesla Stocks: Tesla Is Offering Discount To Boost Unit Sales
Though Tesla had a set goal of 50% growth in the number of vehicles it shipped in 2022, Tesla has long been the high-priced spread, with the discount it announced in December as a sign that its demand for vehicles is falling short of expectations.
Tesla is offering current owners a 30-day trial of some autopilot features, which normally are a paid upgrade while offering Model 3 and Model Y various discounts including the $7,500 they bought in December along with 10,000 miles of free supercharging.
Well, these were a few factors that will always come to mind when considering the purchase of Tesla stocks. A mere 2.72% of Tesla Stocks sold short which ended 2022 at a whopping 70% below its November 2021 high.
It wouldn’t be wrong to say that its CEO Elon Musk’s great influence appealed to customers to purchase Tesla stocks, as they want to show off their affluence while appearing unique.
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