As he obsesses over Twitter and his notion of free speech, Elon Musk worries Tesla shareholders. It is the third largest investor in the electric car brand that is sounding the alarm today.
We had already mentioned the consequences of Elon Musk’s actions on the Tesla brand. In recent days, the electric car manufacturer’s situation seemed to be improving. But the upswing was short-lived when Musk sold three billion Tesla shares this week.
For several weeks, the billionaire has focused on redesigning Twitter. But Tesla’s loss in value is such that KoGuan Leo, the brand’s third-largest individual shareholder, is calling for a CEO change.
“Elon left Tesla and Tesla doesn’t have an acting CEO”wrote the investor on Twitter. “Tesla deserves and needs a full-time CEO.”
Anyone who owns more than 3.5 billion euros in shares is afraid to see the value of Tesla fall. In fact, the action is worth around $150, the lowest value since November 2020.
“I don’t care if Elon stays or leaves Tesla”
However, Leo reminds us that Tesla is the builder of the future, with or without Musk. He would like someone to be appointed general manager to manage Tesla on a day-to-day basis. But he has no intention of selling his shares at this time.
“Frankly, I don’t care if Elon stays or leaves Tesla. Tesla is a big company and $160 per share is low value. Elon is a simple employee. He is our employee… Elon was a proud father, but Tesla has grown .”
“A performer, we need someone like Tim Cook (Apple director, editor’s note), not Elon. I plan to invest several billions because Tesla will be the biggest company, with or without Elon. »
The investor, who has decided to buy another three million shares, on the other hand, is upset to see Musk get rid of his shares. “Today I’m putting an extra $500 million on the table to support Tesla’s stock price of $160 while Elon has sold $35 billion of his stock, and maybe more in the last few days.”
Real difficulties for Tesla in China
Amid these financial considerations, the difficulties are real for Tesla. According to Bloomberg, production at the Shanghai Gigafactory will slow down as sales decline.
Tesla has denied Bloomberg’s comments, which reveal that the company will reduce production of the Model Y by 20%. Sales continue to be strong for the brand in the Middle Kingdom, with 100,291 units in November. But the competition is sharpening its weapons, and Chinese manufacturer BYD sold more than twice as many vehicles in the same month.
To improve its numbers, Tesla has reduced the price of its cars by 9%, which helps reduce inventory. But in China, where the Covid situation remains very uncertain, sales are not increasing.
Also, the manufacturer seems to be choosing caution and will avoid building up too large a stock of vehicles. The recession could settle permanently in the country, and imports to Europe are no longer as important a necessity as before with the arrival of the Gigafactory Berlin.
At the moment, the situation is not worrying on a global scale, but just like in China, competition will pose a threat to Tesla in the near future. Tesla’s electric market share is currently 64% in the US, up from 71% in 2021 and 79% in 2020.
According to S&P Global Mobility, this fall will accelerate with the spread of competition. The agency predicts that Tesla’s market share will drop to just 20% by 2025.
With the industry transitioning to electric, Tesla will continue to sell a large number of vehicles. But the period of non-competition is over, and the brand must learn to find its place in the overall market.
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