Tesla Shares Slip as the EV Leader Handles a Long List of Obstacles

Trouble seems to be coming from all sides for Tesla. Where will that leave the people looking to buy electric vehicles?
Written by Andrew Koole
Reviewed by Kathleen Flear
Jun 3, 2022
The electric vehicle revolution might be well on its way, but the last two months have not be kind to the new sector of the auto industry. Startups that jumped onto the stock market last year have seen their shares lose up to 75% of their value.
Newcomers aren’t the only ones seeing hard times. Industry leader
Tesla
had an impressive first quarter but has also lost about 35% of its stock value since its CEO,
Elon Musk
, started trying to buy Twitter. 
While many say the deal has affected Tesla, the company has plenty else to worry about.
Jerry
, your car ownership
super app
, took a closer look at Tesla’s situation to help keep you up to date.

Tesla’s strong position in a struggling industry

Tesla reported record deliveries and earnings in the first quarter of 2022. But even as the company’s success reached the news, Musk and other
EV CEOs
were sounding the alarms over their struggles to acquire materials.
The
chip shortage
has received the most attention, but access to and prices for other electric car components, especially the precious metals need for battery production, are also blocking EV makers from keeping up with demand. 
On top of that, Tesla is dealing with a number of controversies, from investigations into its advanced driver-assistance features from the National Highway Traffic Safety Administration (NHTSA) to lawsuits and allegations of racism from former employees.

Is Elon Musk becoming a liability for Tesla?

Tesla’s CEO, Elon Musk, has always been a bit of a loose cannon. 
While the richest person in the world has helped guide the EV builder to the top position it holds today, not all of his actions have benefited the company responsible for earning him most of his wealth—his Twitter feed offers plenty of examples. 
Musk has been especially erratic in 2022, specifically in April, when the CEO started his hostile takeover of the aforementioned social media platform. 
Tesla’s investors have reacted by selling enough shares to dramatically drop the company’s value, a trend the
Washington Post
says increased momentum when Musk put 50% of his shares down as collateral in the deal. Since mid-April, the company has lost $342 billion. 

How does all this affect Tesla ownership?

For
Tesla drivers
, the tumbling stock prices might not be that much of a concern. The company’s output and infrastructure is already so well established that the company’s recent losses probably won’t affect people already plugged into the brand.
For people looking to get into a Model 3, S, or Y, it might be a different story. Depending on how low the stock goes, it could force the company to put a hold on its production-scaling plans. That would in turn prevent Tesla from bringing its price back down to the $35,000 marker.
No matter what electric vehicle you decide to buy, shopping for
car insurance
with
Jerry
will help you save on the switch. A licensed broker that offers end-to-end support, the Jerry app gathers affordable quotes, helps you switch plans, and can even help you cancel your old policy.
icon
Compare Car Insurance Quotes For Free
Jerry automatically shops for your insurance before every renewal. Members save $872/year.
rating primary
4.7/5
Rating on App Store
Start saving money!
12,000+ Reviews
Trusted by 3.5M car owners like you
National General
Allstate
AAA
Aig
Chubb
ClearCover
CSE
Dairyland
DirectAuto
Elephant Auto Insurance
Kemper
Libertymutual
Gainsco
Mapfre
Mercury Auto
Metromile
Nationwide
Plymouth Rock
Progressive
State Auto
Safeco
Travelers
Metlife
Bristol West
National General
Allstate
AAA
Aig
Chubb
ClearCover
CSE
Dairyland
DirectAuto
Elephant Auto Insurance
Kemper
Libertymutual
Gainsco
Mapfre
Mercury Auto
Metromile
Nationwide
Plymouth Rock
Progressive
State Auto
Safeco
Travelers
Metlife
Bristol West

You might also be interested

Browse Questions from Car Experts

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free