The Tesla brand has a boss problem. Elon Musk’s escapades continue
Banking experts at Bank of America view Musk’s regular media updates on X as bad for Tesla stock. It’s still far from its peak: two years ago it was worth $380, now it’s around $170.
But Musk’s plans are still lofty. He recently tweeted about the production of the fastest electric car in the world on his platform You can pre-order the beautiful Tesla Roadster today for 50,000 Swiss francs.
However, Musk’s announcements do not always deliver what they promise. He announced the electric supercar in 2017 and announced it for 2020. It is now planned to go into series production next year.
There are also delays with the super SUV Cybertruck. Despite Elon Musk’s recent announcement, it is not yet clear when the lightning-fast roadster will actually be seen on the road for the first time.
The question also arises whether Musk is scaring away customers with his antics.
To Schawinski, Musk was once a superhero
Media pioneer Roger Schawinski (78) was one of the first twenty people in Switzerland to buy Musk’s successful Model S. “To me, Musk was an absolute hero, a pioneer,” says Schawinski. Now the Tesla and Space X boss is behaving in an impossible way, both politically and socially.
With his wealth of power and his unstable nature, Musk is a big risk for Tesla. Under the title of freedom of speech, he bought Twitter and turned it into X. Now X is a platform for racist propaganda.
“I wouldn’t buy a Tesla again because of Musk,” Schawinski says. The sympathy bonus is probably gone for many people. Especially in the progressive, tech-savvy circles that would have bought the California vehicles in the early days, when Musk and his Tesla had a big lead over all other electric cars.
Musk’s loss of image seems to be gradually becoming visible on the Swiss streets. The Tesla Model Y has been the most popular car in this country for the past two years. In February it was narrowly overtaken by the Skoda Octavia, according to figures from Auto Switzerland.
A trend reversal? “Vehicles delivered today were usually ordered months ago,” he explains Christoph Wolnik, deputy director of Auto Switzerland. Decreases in demand due to Musk’s behavior only become visible with a delay.
Which could be really dangerous for Tesla
Andreas Herrmann, director of the Institute for Mobility at the University of St.Gallen, says: “We always expect strange activities and statements from Elon Musk.” So far, this hasn’t hurt him or the Tesla brand. “On the contrary, its idiosyncrasy has always kept the brand interesting.”
This is also because many Tesla customers consider themselves non-mainstream. Hermann says:
Nevertheless, Hermann shares Schawinski’s view that Tesla may no longer be able to maintain its lead. “The danger to Tesla comes less from Musk’s statements than from Chinese electric vehicles.”
The Chinese are now offering improved quality at lower prices, which will make life difficult for Tesla in the mid- and lower-end vehicle segment. In particular, the Chinese brand BYD and some others are entering the market with vehemence.
In addition, after a delayed start, European car manufacturers will now also have a say in the electric market. “You have to remember that Tesla did well last year with almost 17 percent of the electric market share – but more than 80 percent of new electric cars in 2023 will not come from Tesla,” says Autoschweiz’s Wolnik.
What about the German manufacturers?
The market leader for electric cars in Switzerland in terms of imports is not Tesla, but AMAG, which sells the Volkswagen Group brands, namely VW, Audi, Skoda and Seat. And BMW competes with Tesla with the new i5-eDrive and a range of about 500 kilometers.
“The German manufacturers – except VW – are focusing more on the premium segment,” says Herrmann. VW’s new flagship ID.7 is available from just 66,500 francs, while the ID.1, scheduled for 2027, will cost just 20,000 euros.
The mobility professor thinks that Chinese providers will soon dominate mainly the lower and middle segments. However, because of their cheap products and less so because of Elon Musk’s trials and tribulations.
The electric car market is currently experiencing a dip after a rapid recovery, especially in Germany. German customers are increasingly opting for cheaper combustion engines, also because electric cars are no longer subsidized in the same way as before. There is also a dent in Switzerland. “After a market share of around 21 percent for new registrations in 2023, we are only at just under 17 percent at the end of February,” says Wolnik of Auto Schweiz.
The decline is not as severe as in Germany, with a drop from 18 to 11, but is still noticeable. The reasons for this are the recently introduced car tax on electric vehicles in Switzerland and electricity prices that are on average 18 percent higher than in the previous year in the state-dominated energy market. “In addition, access to charging infrastructure is still difficult, especially for renters and condominium owners,” says Wolnik.
Sources
- ivz-opendata.ch: Federal Road Agency (Astra)
(aargauerzeitung.ch)
Source: Watson
I’m Ella Sammie, author specializing in the Technology sector. I have been writing for 24 Instatnt News since 2020, and am passionate about staying up to date with the latest developments in this ever-changing industry.
