HomeBusinessTech stocks smoke, Nvidia plummets 10% to end worst week of the...

Tech stocks smoke, Nvidia plummets 10% to end worst week of the year

If an autonomous future was one pillar supporting Tesla’s (TSLA) “magnificent” market valuation, an electric car cheap enough for most families was the other.

But changes within the company and outside forces are quickly complicating that vision.

Tesla’s stock price is partly based on mass market EVs and is leading the paradigm shift in how most of the country gets around.

But skyrocketing costs for cars – especially electric cars – have dampened consumer demand and extended timelines for adoption.

As governments look to steer society toward the electric transition, legacy automakers are recalibrating timing as they adapt to declining demand. Several major players, including Ford (F) and General Motors (GM), have recently scaled back their EV plans, while others are relying on hybrid vehicles to kick-start the shift.

Just as competition turns to cheaper hybrids and better-selling gasoline models, Tesla appears to be turning away from its long-awaited entry-level EV and solidifying its position as a luxury automaker.

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At the same time, the funds for the affordable Model 2 EV project have now been allocated to a far-fetched robotaxi scheme.

Against an increasingly pessimistic backdrop, the Model 2 was intended as a glittering answer to Tesla’s short-term problems. But without a bold entry-level model to revive Tesla’s financials, the company’s challenges appear less temporary. For some analysts and investors, Tesla has no future without the Model 2.

The idea of ​​driving without human intervention has played a crucial role in Tesla’s technology-based growth story. But what if this is the only part?

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