An active group on Reddit is betting on the further decline of Tesla's stock. This trend is rapidly gaining traction, drawing attention to the company's challenges and prospects.
Current Situation of Tesla on the Market
Tesla's stock has experienced a significant downturn, losing nearly 50% of its peak in December 2024. Despite Elon Musk's optimistic forecasts regarding the prospects of self-driving technologies and Optimus robots, the market has turned against the company. Tesla shares are now priced at around $248 each, yielding substantial profits to short sellers — about $16.2 billion in the last quarter.
Rising Competition and Its Impact on Tesla
The decline in Tesla's performance is driven by increasing competition from Chinese electric vehicle manufacturers like Shenzhen-based BYD, introducing advanced charging systems. Market sentiment shifts also contribute significantly, placing Musk's company in a tough spot amidst growing scrutiny over their stock's negative trajectory.
Challenges for Tesla's Leadership
Beyond market challenges, Tesla faces internal struggles. Critics claim that Elon Musk's focus is more on other projects, including his role in the US government, negatively impacting Tesla's management. Investor Ross Gerber demands a CEO change, citing the company's image issues.
The ongoing situation around Tesla continues to spark lively discussions among investors and traders. The rise in competition and internal instability presents unique opportunities and challenges that the company needs to tackle.
