Monday, April 22, 2024

If a google search of "finger guillotine" and your product's name calls up multiple videos, you may have a PR problem

In terms of brand disasters, if the Edsel and the DeLorean had a child, it would be the Cyber truck. In terms of impact on the company, it would bearing much stronger resemblance to the latter. 

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.

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).

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?

No comments:

Post a Comment