Tesla Faces Challenges In 2023: Can It Maintain The Lead? 

Tesla is experiencing a very difficult year. As the company nears the end of Q1, it continues to have an uncertain future and has been the worst-performing stock on the S&P 500 for more than a month.


The company’s stock has decreased by nearly 32% since January, reaching its lowest point in ten months. The outlook for the remainder of the year is not optimistic. A new report by a Wells Fargo states that Tesla is a “growth company with no growth.” 😉

Tesla’s growth is predicted to remain stagnant this year and decrease starting in 2025. This is because of increased competition, especially from Chinese companies, which are gaining larger portions of the global electric vehicle market and are offering more competitive prices.

Tesla is experiencing difficulties fulfilling customer orders and the resale values of their vehicles are decreasing significantly.

Some of the company’s problems are due to their own actions, such as their vehicles having high depreciation rates, which goes against Musk’s previous prediction that the value of their cars would increase as they improved their self-driving technology.

The EV maker has been cutting prices to keep up with the rest of the world and brace for significantly slowing demand — but that could prove disastrous in the long run.

Tesla’s attempts to achieve “Full Self-Driving” have encountered numerous obstacles and have been the subject of government investigations. In the meantime, rival companies have had ample opportunity to develop and surpass Tesla’s driver assistance software.

The company acknowledges that it may face significant challenges in the future, as stated in a news release after its Q4 earnings call in January, admitting that their vehicle volume growth rate may be lower than in 2023. In short, there are multiple challenges ahead and it appears that Musk is not ready to tackle them.

Reference- Reuters, Inside EVs, Futurism, Tesla Twitter-handle, CNN, CNBC