big shareholders are chasing Musk
While he is obsessed with Twitter and his concept of freedom of expression, Elon Musk worries about Tesla shareholders. It is the third largest investor in the electric car brand that is now sounding the alarm.
We have already mentioned the consequences of Elon Musk’s actions on the Tesla brand. In recent days, the electric car manufacturer’s situation seems to be improving. But the surge was short-lived, as Musk sold three billion Tesla shares this week.
For several weeks, the billionaire focused on redesigning Twitter. But Tesla’s loss of value is such that KoGuan Leo, the brand’s third largest individual shareholder, has called for a change of CEO.
“Elon leaves Tesla, and Tesla doesn’t have a working CEO”the investor wrote on Twitter. “Tesla deserves and needs a full-time working CEO. »
Anyone who owns more than 3.5 billion euros in shares is afraid to see Tesla’s value plummet. In fact, the action is worth around 150 dollars, the lowest amount since November 2020.
“I don’t care if Elon stays or leaves Tesla”
However, Leo reminded that Tesla is a builder of the future, with or without Musk. He wants to see someone appointed as general manager, to manage Tesla day-to-day. But he has no plans to sell his shares at the moment.
“Honestly, I don’t care if Elon stays or leaves Tesla. Tesla is a big company and $160 per share is undervalued. Elon is a simple employee. He is our employee… Elon is a proud father, but Tesla grew. »
“A performer, we need someone like Tim Cook (Apple director, editor’s note), not Elon. I plan to invest a few billion, because Tesla will be the biggest company, with or without Elon. »
The investor, who decided to buy three million additional shares, was annoyed on the other hand to see Musk part with his shares. “Today, I’m putting an extra $500 million on the table to support Tesla’s stock price at $160, while Elon sells $35 billion of his stock, and maybe more in the last few days. »
Real difficulties for Tesla in China
Amid financial considerations, the difficulties are real for Tesla. According to Bloomberg, production at the Shanghai Gigafactory is slowing as sales decline.
Tesla denied Bloomberg’s comments, which revealed the company would cut Model Y production by 20%. Sales continue to grow 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 cars in the same month.
To improve its numbers, Tesla cut the price of its cars by 9%, helping to reduce inventory. But in China, where the Covid situation remains very precarious, sales are not increasing.
Also, the manufacturer seems to be choosing caution and will avoid building too large a stock of vehicles. Recession can permanently settle in the country, and imports for Europe are no longer as important a necessity as before with the arrival of the Gigafactory Berlin.
For now, the situation is not worrying on a global scale, but as in China, the competition will pose a threat to Tesla in the near future. Tesla’s electric market share is currently 64% in the United States, up from 71% in 2021 and 79% in 2020.
According to S&P Global Mobility, this fall will accelerate the spread of competition. The agency predicts that Tesla’s market share will drop to just 20% by 2025.
As the industry transitions to electric, Tesla will continue to sell more cars. But the era of non-competition is over, and the brand needs to learn to find its place in the general market.
Also read
One truck driver explains why the Tesla Semi is an “absolutely stupid” vehicle
