There are many reasons why Tesla’s market value has dropped like a rock in a lake. Many believe that Musk’s childlike techno-libertarianism and the predictable reaction of people around the world are the primary causes of Tesla’s sudden decline. However, I think that is just one factor.
The Tesla truck has become the laughingstock of the auto industry. Not only has it been poorly manufactured, but it also looks like an unfinished mockup of a stainless steel dumpster on wheels. I have lost track of how many recalls the truck has had. Despite the rosy projections of producing 250,000 trucks yearly, less than 40,000 were sold in 2024.
While the pioneering Tesla EVs had a great run initially, their future is less bright. The simple facts are that they are losing market share on both the low-end and the high-end. The Kia EV3 beats the Tesla Model 3 on features and cost. On the high end, the Mercedes CLA 250+ has a more extended driving range, and its Drive Pilot is vastly superior to Tesla’s vaporware called Full Self Driving. The Mercedes entry costs a bit more, but its superior features and design make for a better investment.
Musk’s MAGA clownish behavior has alienated his Tesla “base” in Blue States. Moreover, Red States are much less likely to purchase a Tesla. Most Red States have fewer people and larger distances. There are fewer potential customers, fewer wealthy customers, and fewer charging stations. Tesla’s distance limitations make a Tesla less desirable. Another fundamental problem for Tesla is that most Red-State people have not previously trusted EVs. Why would they suddenly become environmentally conscious or progressive?
To make matters worse for Tesla, the Chinese company BYD now has a vastly superior battery technology. Musk has been desperately trying to make inroads in China, but BYD’s superior battery technology and homecourt advantage will stymie his lofty goals.
The cumulative effects of Tesla’s problems will cause its market value to drop to the much lower valuations of Toyota, Mercedes, Volkswagen, etc. Moreover, the resale value of a used Tesla was $67,900 in July 2022, and in February 2024, it was $31,725.
In addition to Tesla investors who see their money going up in smoke, some bought Teslas. They now see their automobile investment undermined, and many find themselves suffering from MRS.
Musk Realization Syndrome
Definition: The moment Elon Musk authoritatively talks about a topic you understand with a painful lack of knowledge, context, or experience, a cascade of realization occurs that Musk is actually an incompetent, egotistical, fraudulent halfwit. This syndrome can cause depression, disillusionment, anger, bitterness, and, in some cases, deep-seated denial, cognitive dissonance, and even derangement.
Totally agree on MRS and it’s current meaning. I do hope that we will soon see another meaning for that acronym, MUSK REMOVAL SYNDROME gaining favor which we as a vast majority of this country (and the world) would love to see. As Eddie Murphy in the movie Trading Places stated “The best way to get back at rich people is to turn them into poor people”. We can all boycott every business he has, and demand that the government cancel all his massive government contracts (approx $8 million per day)!