TL;DR

Tesla, once the darling of the EV market, faces a harsh reality check. Investors, blinded by hype and promises, now face steep losses, mirroring past financial crises.

Story

John, a retired teacher, lost his life savings betting on Tesla being the ‘Apple of EVs.’ He’s not alone. Many believed Tesla’s self-driving tech and electric car dominance were unshakeable. They were wrong.

Tesla’s stock price, once soaring, is now plummeting. Like a house of cards built on hype, the company’s vulnerabilities are exposed: shrinking profit margins, Elon Musk’s erratic behavior, the disastrous Cybertruck, and fierce competition catching up.

The cracks appeared long ago. Remember the overpromised Full Self-Driving? Still not here. Meanwhile, competitors quietly built superior tech, leaving Tesla in the dust. This isn’t 2008, but the blind faith reminds us of the subprime mortgage crisis—investors ignoring glaring risks, seduced by a compelling narrative.

‣ Profit Margin: The percentage of revenue left after deducting costs. Shrinking margins signal trouble. ‣ *FSD (Full Self-Driving): Tesla’s advanced driver-assistance system, still far from fully autonomous.

Musk’s antics, once quirky marketing, now repel customers and scare investors. His political leanings alienate a core EV market. The Cybertruck, meant to be revolutionary, became a symbol of Tesla’s decline—plagued by delays and quality issues. Like Enron, hiding losses behind creative accounting, Tesla’s inflated valuation finally crumbled under the weight of reality.

Many, like John, are left picking up the pieces. Their trust misplaced, their savings decimated. The lesson? Hype can be blinding. Don’t fall for charismatic leaders and empty promises. Scrutinize the fundamentals, not just the story.

Advice

Don’t invest based on hype. Research the company’s financials, competition, and leadership. Remember, even the shiniest apple can be rotten inside.

Source

https://www.reddit.com/r/stocks/comments/1inb7p0/tsla_isnt_the_nvidia_of_evs_anymore/