As Tesla shares decline due to CEO Elon Musk's controversial behavior, the American Federation of Teachers (AFT) expresses concern about the company's financial health. Union president Randi Weingarten sent a letter to major asset management firms addressing Tesla's drop from $489 to as low as $290.80, questioning its market strength amidst rising costs and competition. The letter highlights a 60% sales decline in Germany and the emergence of new competitors like IONNA, indicating a pattern of vulnerability in Tesla's pricing strategy. The growing unrest echoes broader concerns over Musk's divided attention and high executive compensation amid challenges.
These are not isolated incidents but rather a troubling pattern that suggests Tesla's pricing power is eroding, leaving it vulnerable to market fluctuations and increased competition.
Weingarten pointed to Tesla's stock price dropping to as low as $290.80 from a high of $489, as well as the company's market capitalization falling below $1 trillion.
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