Tesla Inc. shares are down more than 61% year-over-year. The stock hasn’t been this low since the fall of 2020, a particularly turbulent time in the market. Tesla, unlike many companies, has enjoyed tremendous success since the start of the global pandemic. Now, it seems the bubble has burst as CEO Elon Musk faces more scrutiny and criticism than ever before. Tesla’s future success may depend on these two nameplates.
Tesla still hasn’t made an affordable electric vehicle
Tesla has been incredibly successful in the last five years despite its high starting prices. The Model 3 compact car is the only vehicle the company offers that is below the average price of a new vehicle. Add taxes and fees to the equation, and even the Tesla Model 3 seems overpriced compared to other electric vehicles.
Sure, Tesla’s design language is unique and its vehicles are adjacent to luxury, but to scale, you’ll eventually need an EV that the average American can easily afford. Get into the Tesla hatchback. According to Autoweek.com, Tesla is developing a hatchback with a starting price of $25,000. So even if the EV is completely excluded from any federal EV tax incentives, it will still be affordable.
General Motors changed the game with the 2023 Chevy Bolt, the current most affordable electric vehicle on the market. The 2023 Chevrolet Bolt starts at just $25,600. The nameplate has had its reliability issues in the past, but it’s set to become a true contender in the EV space thanks to its value proposition. If Tesla doesn’t have an answer to GM’s Chevy Bolt, it could lose a massive percentage of its market share.
Tesla once dominated the electric vehicle space. Now, automakers like Volkswagen are producing popular electric vehicle nameplates that are offered internationally. The competition is catching up with Tesla, and the automaker will need to adjust to stay ahead.
Tesla’s Cybertruck is a milestone for the company
Consumers have been waiting for the Tesla Cybertruck for years. Elon may have been ahead of the game by debuting in 2019. At the time, the Cybertruck clearly had some issues that needed to be worked out. The electric pickup truck has been pushed back three times since it was initially revealed.
As we head into 2023, many consumers have given up on the electric truck entirely. According to electric, the EV has amassed 1.5 million pre-orders, with no clear release date in sight. It’s a frustrating time to be a Tesla fan, as its CEO can’t seem to stay out of the negative headlines.
Tesla can still change things
Whether you love or hate Elon Musk, the fact remains that his name has been associated with several impactful companies in recent years. It’s the face of Tesla, for better or worse, and has introduced car fans to some of the best electric vehicles ever made, like the Tesla Model X Plaid.
Tesla still has a chance to make up some of the ground it lost in 2022 by launching some new nameplates in the near future. Tesla, bring on the Cybertruck and roll out the affordable hatchback while he does it.