Tesla Inc.’s stock is down over 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 great success since the beginning 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 doesn’t make an affordable electric vehicle
Tesla has been incredibly successful in the past five years despite its high starting prices. The Model 3 compact car is the only vehicle the company offers that is below the average new vehicle price. Add taxes and fees into 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 luxury-adjacent, but to scale, it will eventually need an EV that the average American can easily afford. Enter the Tesla hatchback. According to Autoweek.com, Tesla is developing a hatchback with a $25,000 starting price. So, even if the electric vehicle is completely excluded from any federal electric vehicle tax incentives, it’ll 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 had its reliability issues in the past, but it’s set to become a real 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 to Tesla, and the automaker will need to adjust to stay ahead.
The Tesla Cybertruck is a milestone for the company
Consumers have been waiting on the Tesla Cybertruck for years. Elon may have jumped the gun by debuting it back in 2019. At that point, the Cybertruck clearly had some kinks that needed to be worked out. The electric pickup truck has been pushed back three times since it was initially revealed.
As we approach 2023, many consumers have given up on the electric truck entirely. According to Electrek, the EV has racked up 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 negative headlines.
Tesla can still turn things around
Whether you hate or love Elon Musk, the fact is his name has been associated with several impactful companies in recent years. He’s the face of Tesla, for better or worse, and he has introduced automotive fans to some of the coolest electric vehicles ever made, like the Tesla Model X Plaid.
Tesla still has an opportunity to recover some of the ground it lost in 2022 by rolling out some new nameplates in the near future. Tesla, bring on the Cybertruck and roll out the affordable hatchback while you’re at it.