At the end of last week, Tesla was Trading under $150 a share, down over 40% for the year and almost two thirds from its two year high, and yet the company is still trading at an inflated price to earnings ratio far higher than any other major player in the industry (including BYD). This, despite a small and aging product line and a development pipeline that seems to have all but dried up.
The latest drop was probably driven largely by this.
Tesla is recalling all 3,878 Cybertrucks that it has shipped to date, due to a problem where the accelerator pedal can get stuck, putting drivers at risk of a crash, according to the National Highway Traffic Safety Administration.
The recall caps a tumultuous week for Tesla. The company laid off more than 10% of its workforce on Monday, and lost two of its highest-ranking executives. A few days later, Tesla asked shareholders to re-vote on CEO Elon Musk’s massive compensation package that was struck down by a judge earlier this year.
I don't remember who it was but I heard a podcaster comment that it almost looked like Tesla had added a nook specially designed to hold the tip of the loose pedal. Judge for yourself.
Tesla's recalling nearly every Cybertruck it's delivered so far
— Morning Brew ☕️ (@MorningBrew) April 19, 2024
Drivers discovered last month that the accelerator pedal could get stuck pic.twitter.com/axmkGEljXx
This was the latest in a stream of what you might call bad press for the enormous vehicle. (Note: exposing your Cybertruck to a stream will void the warranty).
If you buy a lame-named Cybertruck and have small kids (and or a small penis) best to keep them all away from the razor sharp edges (and get a tetanus shot 💉) … unless you fancy getting Bobbitted
— Facts Chaser 🌎 🤦🏻♂️ (@Factschaser) February 4, 2024
(source: https://t.co/tGmuRufvng) pic.twitter.com/hGWk24UP6W
Hidden feature on the cybertruck: vegetable chopper/finger guillotine! pic.twitter.com/1AxpfJTmXn
— Elai (@elaifresh) January 12, 2024
If you must wash your CYBERTRUCK, please do so when rain is imminent.pic.twitter.com/aVd4mDkzQL
— Damion Schubert - @ZenOfDesign.com on bsky (@ZenOfDesign) April 19, 2024
That being said, we cannot stress enough that your CYBERTRUCK will look like shit if you don't wash off dirt as soon as it possibly appears. Just, for the love of god, don't use water or any form of physical contact when doing so.pic.twitter.com/KBl90L07IB
— Damion Schubert - @ZenOfDesign.com on bsky (@ZenOfDesign) April 19, 2024
Please ignore the fact that safety experts warn that the CYBERTRUCK'S lack of crumple zones may make them not only a danger to themselves but also to well-engineered cars with crumple zones, who will be forced to take greater impact force.https://t.co/gP2j2JmeBo
— Damion Schubert - @ZenOfDesign.com on bsky (@ZenOfDesign) April 19, 2024
Please be cautioned that the supercool death metal wheel on your CYBERTRUCK covers may be destroying the tires.https://t.co/QcN54ipehQ
— Damion Schubert - @ZenOfDesign.com on bsky (@ZenOfDesign) April 19, 2024
Be advised that tinting the windows of your CYBERTRUCK may void your warrantee.https://t.co/CDMC39uHuN
— Damion Schubert - @ZenOfDesign.com on bsky (@ZenOfDesign) April 19, 2024
And for the love of god, please don't take your CYBERTRUCK off-roading.https://t.co/5cQdcldJGm
— Damion Schubert - @ZenOfDesign.com on bsky (@ZenOfDesign) April 19, 2024
By all indications, other than a few wild promises (robo-taxis, humanoid robots) that even the cult members are starting to question, Elon Musk bet the company on this monstrosity which has been beaten to market by clearly superior competitors. At this point, the question isn't why Tesla's stock has dropped so much; it's why is it still so high?
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