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The end of Tesla?

 it takes a special kind of idiot, to think that he can antagonize his entire customer base, and think that it will not impact his business. When Elon Musk went to work for Donald Trump, and created the doge department, he antagonized every liberal, and these people represent 90% of his client base.That’s not a brilliant move. Now Elon Musk is worth hundreds of billions of dollar, so he shouldn’t care a great deal, however, he needs to care because of several other issues.

The cyber truck has been a disaster, most have had to be recalled because of defective glue, it’s not a truck, it’s not a car, it’s noisy, relatively uncomfortable, but great as a development platform. What Tesla has learned in making car manufacturing more seamless is truly amazing.

The problem was that Elon Musk was so pissed with the Democrats, and with Joe Biden, in particular because of some slight, which were just plain stupid too. By the way, that he decided to support with hundreds of millions of dollar, Donald Trump and his quest to return to the White House.

The problem that arises from Donald Trump is as follows, and it was fully incorporated and his big beautiful bill, personally I think it’s a stupid name, but it’s what the damn thing was called. Anyway, in the big beautiful bill, all green tech subsidies were eliminated in favour of promoting the colon industry, it’s evident, that Donald Trump base hates electric cars hate solar panel hate wind farm where they like is coal mines and pollution. Oh yes, and drill in the arctic. Why, it’s not entirely clear, but the impact of the big beautiful bill is starting to be felt.

The first, was the disappearance of the concept of carbon credit. The second was the EV mandates. Granted, Tesla is mostly out of the EV mandates, having produce more cars than anyone else in America. However, the carbon credit and the EV mandates represented large chunk of change for Tesla. 

The next nail in the coffin, is the relationship between America and China. Today, 80% of all Tesla batteries come from China, all the battery technology comes from China. It’s fair to say, that in 2025, China is at the forefront of green technology, with battery, technology, transformers, solar panels, wind farms, you name it, and China is there while America has decided that cold plants, coal mines, and drill, baby drill is the only way to go forward.

in short, Tesla and Elon Musk have three massive challenges; the first, is that Elon Musk is hated by the people who buy his cars. The second, was that the EV mandates have been removed, as well as a carbon credit which represents Elon Musk second challenge. The third challenge is crappy product. Virtually no money has been invested in the Y, or the three, or the S and the X. Every penny that’s been invested has been invested in the cyber truck Tesla‘s offering is old, and dated. In addition, for the past 10 years, Elon Musk has been making promises to his car, buyers, with regards to self driving. Many have purchased a great expense. These additional features, that are still not been deployed. The last challenge, is batteries.

Now, for all his fault Elon Musk is a smart man. But these are four very challenging issues that Tesla will have to face. In addition, SpaceX has been having a bit of a bother over the past few months.

Now, despite these two huge challenges that normally we occupy people 100 hours a week each, Elon Musk has decided to jump back in the political arena, and has created a new party, it’s hard to see how all these competing interest can all survive.

In my humble opinion, Elon Musk’s biggest failure, has not been his incredible imagination, it’s been its delivery. He makes promises, he makes Them often and often doesn’t deliver.

How the story ends I have no idea, but one thing for sure, I have a hard time believing that Tesla should be trading at 219 times earnings. That’s just insanity.

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