Tesla had a rough 2022, to say the least.
From the economy to inflation to the Russian invasion of Ukraine, electric car makers—and the rest of the tech and auto industry at large—suffered a blow. However, the recent actions of the company’s CEO Elon Musk, following his reluctant purchase of Twitter, have only drawn the beleaguered Tesla deeper into the abyss of financial woes. In fact, Tesla has lost nearly 70 percent of its market cap to date.
That’s a drastic change from just a year ago, when the company, valued at $1 trillion, looked like it could do no wrong. Some are questioning Musk’s leadership, while others are going further—speculating that this could be the beginning of the end for Tesla.
It cannot be denied that the company has made an impact in both production and sales of electric cars. After all, he’s done something that once seemed impossible: Convincing the public that EVs are, in fact, pretty cool. Now the older automakers are playing catchup to get the customers to buy their choice on electric cars.
Tesla revolutionized the way the world views and drives EVs – but with its back against the wall and tweeting financials looking more and more bleak, we could very soon find ourselves in a situation where most of the game The big name has gone.
Let’s be clear: this is extremely unlikely to happen… but what if it does?
How to make (and burst) the EV bubble.
To understand the impact of Tesla’s disappearance on the future of EVs, it’s important to wrap our minds around how we got here.
“I give Elon Musk a lot of credit. Raghunathan “Raj” Rajkumar, professor of electrical and computer engineering at Carnegie Mellon University and autonomous vehicle researcher, almost single-handedly made electric vehicles glamorous and sexy.” Couple that was changing the automotive industry and doing the right thing for the planet.”
However, it was a double-edged sword. Musk hyped Tesla through lofty — if slightly unrealistic — promises and shitposts on Twitter. He created an army of Elon Stans ready to go to war online for him to protect his companies from even the tiniest of fights. Meanwhile, the cars were finally selling well. It all resulted in the perfect mix to propel Tesla’s stock’s rise into the stratosphere like a SpaceX rocket.
,If Tesla collapses and they go out of business completely, I believe every giant will be dancing in the streets [automaker] on the planet.,
, sandy monroe
But the value was always the best. It’s not that other automakers weren’t going to make electric cars anytime soon. So Tesla’s market cap became a bubble of epic proportions.
One of the people holding the needle was Musk himself—whom he popped with the acquisition of his favorite social media platform, Twitter.
The prince said, “It was utter nonsense.” “At the end of the day, business has to be business. Sooner or later, things that go up have to come down, and that’s what we’re seeing, and will continue to see.”
There are also fundamental economic factors. Due to the faltering economy, demand is low everywhere. Plus the market looks a lot different than it did a year ago. Tesla is no longer the only horse in the race. The EV industry is huge now, and with the added competition, it was really only a matter of time before Musk’s company started feeling the pressure.
a world without tesla
Given Tesla’s profound impact on the automotive industry and consumer habits, there’s really no question that it will have a profound negative impact on the future of EVs.
“If Tesla collapses and they go out of business completely, I believe every giant will be dancing in the streets.” [automaker] on the planet,” Sandy Munroe, an independent automotive engineer, consultant and industry expert, told The Daily Beast.
Munro is best known for his famous teardown reports providing incredibly detailed analysis of various vehicles. His glowing review of Tesla’s Model Y in 2020 resulted in a bullish outlook not only on the company’s future but on electric vehicles in general. A few years ago, he predicted that by 2030, more than 50 percent of the total vehicles in the market would be electric vehicles. Due to Tesla’s success, he has updated that prediction to 2028.
However, Munro admits that, if Tesla were ever to go bankrupt, neither could be predicted and that he would “definitely walk away from EVs.”
That’s because, to him, Tesla’s downfall would light the proverbial fire under every legacy automaker’s ass toward new, emerging technologies — and instead, encourage them to go back to old ones. There will no longer be pressure to build new plants and devote our resources to R&D for batteries, charging stations and electric powertrains. Even regulators would have little incentive to make changes to the country’s transportation and energy infrastructure.
Overall, we will see a return to normal emissions of our gas-guzzling, greenhouse gas. “If Tesla goes out of business, you see how fast the Keystone pipeline goes through,” Munro said.
The prince’s assessment is not that severe. He believes that the technologies and innovations that Tesla has supported will eventually continue. After all, consumers already want EVs more than ever — and that number is only expected to grow. Car companies are also seeing this and are ready to capitalize on it.
“The global automotive industry is now pushing for EVs, and many companies are publicly announcing that they will switch to a fully electric line of products. I don’t think it is going to stop anytime soon. However, he acknowledges that it is unclear whether many of the goals outlined by these automakers are realistic due to insufficient charging infrastructure and the slow rate of EV adoption by consumers overall.
The only real winner to emerge from the death of Tesla will be China. The country is already making a concerted effort toward electrifying its transportation infrastructure, aiming for 40 percent of all vehicles sold domestically to be EVs by 2030, and more than 20 million vehicles in service. There are enough charging stations.
Munroe said this could lead to a kind of geopolitical tortoise-and-hare situation where China moves faster than the Western world and eventually eclipses the US by sleeping with technologies like EVs that are more dangerous than ours. will be important to the future of the collective.
“China will survive,” Munro explained. He said we may get to a point where America has relatively few EVs because we were so focused on short-term profit.
Tesla will die another day
The future may seem a little uncertain for Tesla — but it looks likely to survive the current downturn. Sure, it may not peak at $1 trillion last year (at least, for a while), but it will probably see it.
Munro said, “There’s no way Tesla is going belly up.” “It’s just not going to happen.” He said there are two primary factors as to why the company will keep going.
The first is actually musk. While many may be upset by his antics on Twitter (Tesla stock investors chief among them), there’s no denying that he helped revolutionize and champion the very industries the world will be most focused on in the future. Will be more dependent: Electric cars and space travel. If he can distance himself from the social media albatross wrapped around his neck, he may be able to help Tesla navigate the increasingly crowded EV market and beyond 2030.
Second, Monroe said, are the kids. Yes Child. He believes that children—more than any other market indicator, stock trend, or McKinsey consultant—accurately point the way for the future of things like the automobile and, therefore, Tesla.
“If you talk to kids, suddenly you understand what they don’t like,” he said. “‘I don’t like the smell of gasoline. I don’t like the black smoke coming out of cars. I want to do more for the environment.’ So I don’t think Tesla is going away.