Take your choice Tesla's brand value saw a 26% YoY decline, partly due to Musk: study Tesla (TSLA) receives price target bump to $500 from Piper Sandler
They are not mutually exclusive. Lowering brand value points to continued headwinds for auto sales in the USA and Europe. China sales are unaffected and I doubt the energy sales will be affected. Tesla Energy sales have been growing and are expected to become a larger and larger part of the business.
Why? Because you don’t agree with their conclusion? Have you surveyed owners and a random group of prospective buyers?
Which conclusion did I not agree with? The one that said Tesla was going to go down, or the one that said it was going to go up?
I interpreted brand reputation decline to translate into some number of forgone sales. Time will tell if other things like the Y refresh overcome a decline in perceived desirability.
Brand reputation is a future indicator. Changes in brand reputation will affect future sales. Brand reputation is falling in the USA and Europe only. Brand rep is not falling, due to Musk, in China. 4th quarter was a good example of that. Sales slid in both Europe and the USA, but grew in China. China's growth offset the sales losses in the other areas. In addition, auto sales are not the only thing that affect the stock price. As I mentioned earlier, energy sales are growing rapidly. If Tesla solves FSD and AI, they can stop making cars and still have a soaring stock price. Negative movement of reputation definitely has an impact on auto sales, but it isn't the only factor. Thus, having a loss of rep in part of the world does not preclude the stock price go up.
A bigger threat to TSLA, IMO, is a falling out between Elon and Trump. TSLA price got a huge runup on the idea of fewer regulation and red tape, in addition to Elon and Trump being all buddy-buddy. Points of friction have already appeared. Now, Elon has a ton of money, so perhaps Trump will just deal with it. If Elon falls out of favor, Trump can make very difficult on Elon, and TSLA. I see the price dropping below where it was prior to the bromance.
Some challenges from Executive Edicts: Eliminate the $7,500 new and $4,000 used EV tax credit to buyers Eliminate the "clean air credits" used by Tesla from non-EV car makers Significant tariff taxes on imported EV car materials not made in USA Ending Paris Agreement that led Musk to quit sociopath V1.0 Musk seems distracted from his area of expertise. Furthermore, sociopaths screw those closest to them in business or any other endeavor. Bob Wilson
Musk as a sociopath ... according to the 2 shrinks in our family - most people have sociopathic tendencies to some degree & in some instances but brandishing the term actually diminishes people's amateur diagnosis. In most instances it's more likely what we are noticing is neurotypical behavior. So say my ½ brother & sister-in-law pro sources. This - from a person diagnosed as having neurotypical traits myself.
I’ll hold off of clinical diagnosis until a professional could at least have a conversation with him. Displaying sociopathic tendencies? Sure, I’d buy that. How similar are those tendencies to tendencies displayed by people with Asperger’s syndrome? All, that said, there is apparently no one left that can settle him down. That is a problem for TSLA.
It's estimated musk has roughly ¾ million shares - which represents less than ¼ of the company stock. That's a lot of pull, but it doesn't mean that his behavior &/or actions can't be reigned in, should the stockholders/board deem it necessary. After several years of stock ownership, the sale profits (401 & SEP not yet realized) were enough to offset 2 Tesla car set's depreciation as well as a little somethin- somethin for another ride of unknown manufacture in the future. So it's hard to be objective. Heck, with its payload capacity being greater than any other ½ ton pickup, we entertained the notion of a cyber truck. The service center being far away (>220 miles to Spokane) was the primary deal breaker. Next heavy capacity payload in line is the plug-in hybrid Ramcharger, still apparently a few months away. .
The over 140mi ev range, DC charge capable Ram Charger is right around the corner which will assure the $7,500 tax credit is still available for using our yet untaxed 401K dollars ... A heavier Tundra (HEV battery) only has a payload capacity of between 1500-1700Lbs & we need a 1500 pickup with >2,200Lbs capacity. The Cyber truck & Ramcharger are best in class with towing capacity that meets the bill. Unfortunately, a "May be in the works" vehicle of any manufacturer doesn't cut the mustard for our urgency-wise pickup need (smallish 5th wheel).
