Tesla elon musk

Tesla has been a front stock for over the years. However, for most of 2019, the news has been unfavorable for Tesla.

Tesla, (NASDAQ: TSLA), has lost its stock value majorly since mid-December. For the first time since 2016, Tesla stock reached below $200 mark in the last week.


According to Wall Street experts, Tesla might have to declare bankruptcy or need to opt for restructuring for the fall in demand for its electric vehicles.

The demand for Tesla is fading

tesla doomed

During the first quarter, Tesla implemented multiple price variations for its vehicle lineup. This triggered the sign of untoward happening and suggested sagging of demand.

In early April, Tesla reported trading of 63,000 vehicles in the second quarter, while the first quarter marked the sale of over 90,000. The report triggered the fears of the company being in a troubled position.

The most profitable Tesla Model S and Model X saw a significant downfall 56% subsequently and 44% annually.

Tesla CEO Elon Musk’s attempt to maximize efficiency

tesla elon musk

The downfall in the sale had an unexpected negative impact on the Tesla stock. Tesla posted a Q1 loss of $4.10 per share.

To curb the loss, Tesla CEO Elon Musk, sent an email to all its employees, on May 16. In another attempt to maximize efficiency, Elon Musk urged employees to “examine every expenditure at Tesla no matter how small” to save the cost.

However, Tesla’s radical cost-saving plans have corresponded with huge losses in the past. Similarly, the latest cost-saving plan did not bode good fortune.

Unusual crisis for Tesla

Unusual crisis for Tesla

According to the Wall Street market bears, Tesla may not be in as much danger as the bad news has been. In the previous quarter, the timing of deliveries compounded the problems of rapid cash burn and a huge loss.

In another bad news, Tesla’s sales momentum would be hampered with another drop in the federal tax credit as of first July.

Tesla is anticipated to have met most of the initial surge Model 3 demands in the international markets. However, Tesla may not be able to materialize the growth it is counting on in the second half of 2019.