If Tesla can do without advertising, it is because its brilliant leader, Elon Musk, manages to constantly talk about the brand on social networks. But what happens when he gets distracted by a new project?
Unlike historical companies, Tesla stock isn’t really a barometer of the brand’s financial health or business success. Stock prices are capable of going on a rollercoaster ride based solely on Elon Musk’s announcements. It must be said that speculators are looking for the slightest signs that could win their bets. Since Elon Musk was forced to complete the Twitter takeover on October 27, Tesla’s stock has been falling.
From €300 to €180 in a few weeks
During the summer, Tesla shares exceeded €300 on several occasions, only flirting around €180 on November 21. Forecasters even speculate that it could drop to €150. Whereas last year, in November 2021, the action exceeded €400. It’s a little cold shower.
It must be said that in order to acquire Twitter, Elon Musk had to part with several billion dollars of Tesla stock, and this had an inevitable effect on his course. If Elon Musk doesn’t quickly restore confidence in Tesla, it could have troubling financial implications for the company.
Twitter: Elon Musk is obsessed with his new acquisition
Elon Musk has always been able to manage the various projects he has launched. With a busy schedule, the entrepreneur always knows how to divide his time between other projects like SpaceX and Tesla and even the Boring Company.
Since acquiring Twitter on October 28 (and even since April when he decided to look at the platform), Elon Musk seems busy blowing hot and cold on the social network and its unfortunate cohorts. The methods used by Elon Musk are even controversial and all this has started tarnishing the image of the entrepreneur with investors.
Is Tesla taking a back seat? Musk, of course, continues to talk about his company from time to time, promising, for example, a new version of its autonomous driving for the Thanksgiving holiday (November 24). However, the excitement around the manufacturer doesn’t seem to be what it used to be. A good part of the communication strategy is based on the entrepreneur’s evasiveness and misleading ideas, Tesla is necessarily going through a recession, which is not helped by other news that is tarnishing its image a bit.
Accidents, “recalls” and ongoing investigations
Several miscellaneous incidents do not help in giving a positive image of the brand. While an accident in China rekindles fears of a potential failure, the brand must make some remote updates to correct the issues considered a recall by American authorities. If these problems are common to many manufacturers, they are more widely commented and highlighted in the case of Tesla.
Elon Musk’s compensation of nearly $56 billion is also in the spotlight in the United States in light of ongoing litigation. As rumors about large stocks of Tesla cars in China, they could quickly destabilize the trust placed in the brand for its hitherto undeniable commercial success.
It doesn’t take much for a brand image to deteriorate, and if Tesla is gearing up for a blast with the delivery of the first Tesla Semis, it will certainly take some strength to restore the brand image. The decline continues
It will be time for Elon Musk to show that he has not completely abandoned Tesla, to reassure investors and customers that he remains concerned about the future of the brand.