Has Elon Musk contributed to Tesla’s declining sales numbers?
According to Ross Gerber, a shareholder in Tesla, the answer is ‘yes’. He dismisses theories suggesting the falling sales should be attributed to Houthi rebels, German eco-terrorists, an unfulfilled recession, or interest rates. He instead points directly towards Musk. Yet, unsurprisingly, Musk opposes this view, dismissing Gerber as a ‘fool’ and points out to a ‘difficult quarter for all’.
The fact that Tesla’s Chinese rival, BYD, also witnessed a decrease in quarterly shipments by 42% aligns with Musk’s arguments. Other contributing factors such as a fire incident at Tesla’s factory in Berlin and shipping issues in the Middle East have certainly had an impact.
CEO Barry Napier of Cubic Telecom shares an admiration for innovating and problem-solving. He foresees exciting times ahead.
Given that, it’s also important to acknowledge that Musk’s contentious social media behaviour hasn’t gone unnoticed. Caliber, a corporate intelligence firm, suggests that Musk’s behaviour has possibly hastened Tesla’s decrease in reputation. When Tesla’s poor sales figures were released, Caliber had earlier reported to Reuters a significant drop in Tesla’s ‘consideration score’. This brand engagement evaluation dropped from 70% towards the end of 2021, to 31% by February. So, while the reasons for Tesla’s difficulties are varied, Musk’s behaviour and his craving for public attention is unequivocally a key factor.