Tesla shareholders felt lighter Wednesday after the automaker's stock price fell from just over $200/share to $186.09/share after CEO Elon Musk's announcement at the 2015 Automotive News World Congress in Detroit — held during the 2015 Detroit Auto Show — that his company wouldn't be profitable until the start of the 2020s.
Business Insider adds that another bombshell dropped at the start of his presentation likely helped to take the wind out of the sails: sales of the automaker's Model S were down in Q4 2014. Musk put the blame on perception among Chinese consumers regarding the charging infrastructure for Tesla's sole model, explaining that not only had the issue been handled, but that the Supercharger network was expanding; the rate of said expansion, however, is slower than that of Europe or the United States.
Further into the presentation, Musk proclaimed that Tesla would sell "a few million" vehicles by 2025 by going for volume over being a niche luxury player, likely built on the back of the upcoming Model 3. Meanwhile, the Model X due sometime this year is already sold out for the entire year despite the company's best efforts to manage demand, such as steering would-be X owners into the driver's seat of the S.
Finally, Musk urged the majors in the audience to continue their investments into electrification, stating that they all need to do more to change the public's perceptions on EVs and hybrids.
Since the plunge, Tesla shares have recovered some of their lost value, closing $191.87/share Thursday afternoon.
The post Tesla Share Price Plummets After Musk's NAIAS 2015 Visit appeared first on The Truth About Cars.
from The Truth About Cars http://ift.tt/Jh8LjA
Put the internet to work for you.
No comments:
Post a Comment