If Elon Musk is no longer the richest man in the world, it is because of the drop in value of his Tesla shares. What if the action of the electric car brand is fallingThat’s because since Musk took over the reins of Twitter, he seems too busy running the social network, to the detriment of his other companies, including Tesla. But unfortunately, for the company, it doesn’t just have to deal with investor concern.
Indeed, it is possible that Elon Musk’s handling of Twitter, as well as his many controversies, will also affect electric car sales at Tesla. This is at least what is suggested by an article published recently by our colleagues from Cnet, which indicates that Tesla customers have decided to cancel their pre-orders, or to end their leasing contracts, because of the behavior of Elon Musk.
Are you less proud to drive a Tesla today?
The article cites two testimonials from two people who allegedly gave up driving a Tesla vehicle. These two people called the company to cancel the pre-order or end the rental agreement, citing Elon Musk’s toxic behavior to justify the decision. In both cases, the salesperson on the phone would have indicated that he “hears that a lot”. Which suggests that these are not isolated cases.
— Roger Cheng (@RogerWCheng) December 19, 2022
As for people who have already purchased a vehicle from the brand, it is possible that some of them are now embarrassed. This is indicated in an article by journalist Anne Marie Squeo (Pulitzer Prize), in an article published by Fast Compagny. Having bought a Model Y in 2020, she says she is currently embarrassed to drive a Tesla.
“Many of us were proud to be part of a progressive group pioneering an entirely new automotive industry, moving beyond a century-old framework to one that puts consumers in control”, explains the journalist. Today, Elon Musk is said to be causing brand damage. According to Anne Marie Squeo, right after acquiring Twitter, Musk started pushing “conspiracy theories, espouse Putin’s language, post pictures of guns by his bedside”.
Of course, part of the public supports Elon Musk in this process. But the problem, according to the journalist, is that these people do not buy Tesla, because they would be people attached to thermal cars, and some would not even believe in the existence of climate change.
Will sales be affected?
For the moment, it is difficult to know if this theory holds water. And we can certainly get a better idea of Elon Musk’s impact on Tesla’s sales when the next quarterly results are presented. But in any case, it should be noted that this is also a source of concern among some investors.
“Where before electric car buyers were proud to show off their Teslas to their friends or show off Teslas in front of their homes, now the Twitter controversy is hurting the value of the Tesla brand”has recently indicated Gary Black, a hedge fund manager with $50 million in Tesla stock.
It remains to be seen whether Elon Musk will actually resign from his position as CEO of Twitter. In any case, if he is looking for a replacement, candidates have already come forward: Tom from MySpace…
—Tom Anderson (@myspacetom) December 21, 2022
and… Snoop Dogg!
Should I run Twitter?
—Snoop Dogg (@SnoopDogg) December 19, 2022
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