Tesla is taking a pounding! It has lost almost a third of its value since the start of this year. There is even talk of a potential EV market collapse.
Automakers have escalated EV production, fuelled by optimistic forecasts of consumer demand and government subsidies, only to confront lagging sales.
Overall, interest in EVs remain strong, but rapid EV adoption has not yet materialised. This is partly due to the challenge of range anxiety, EVs being prohibitively expensive and a still insufficient level of infrastructure to support electric vehicles. Moreover, the batteries these EVs rely on require vast quantities of expensive and difficult-to-source battery materials.
Until these issues are fully resolved and the EV industry proves scalable, Tesla’s stock price is likely to remain volatile.
Any thoughts?