Tesla entered the top 50 of the Fortune 500 for the first time last year, faster than any other company on the list. But its market share in the electric vehicle market is being eroded by Chinese brands such as BYD. Recently, its factories in Europe experienced suspected arson attacks, resulting in hundreds of millions of euros in production losses, which also reflects the increasing number of hidden obstacles under the rapid development trend.
Last week, Tesla's factory located on the outskirts of Berlin, Germany suspended production. The police claim that opponents of the factory's expansion plan are suspected of setting fire to the power grid, causing power outages to the factory and the entire area. The far left organization Vulkangruppe claimed responsibility for the attack, which was suspected of carrying out similar power outages during factory construction.
The Tesla Berlin factory is the only large industrial base here, covering an area roughly equivalent to 420 football fields. Last year, Tesla proposed an increase in production plan with the goal of doubling its current annual production capacity to one million vehicles, which would require logging approximately 100 hectares of forest land.
Due to its proximity to a nature reserve, the factory has been a target of criticism from far right political parties, local conservationists, and radical environmental activists in Germany since its announcement of establishment. Opponents believe that factories occupy forest land, waste water sources, and create employment opportunities mainly for migrant populations. Tesla's ambition to add facilities has intensified conflicts with local residents.
The factory manager publicly stated that the economic losses caused by this attack were as high as nine digits. Tesla CEO Elon Musk criticized in social media that the attackers were either the most ignorant ecological terrorists on Earth, or puppets manipulated by those lacking true environmental goals. In his view, it is unreasonable for not stopping the production and sales of fuel powered vehicles to hinder the development of electric vehicles.
According to reports, the actual water consumption of the Berlin factory is far below the level imagined by the protesters. Last year, the factory only used one-third of its approved annual water quota. Tesla employees revealed that the water used for each car produced is 33% lower than the industry average.
The Berlin super factory has now resumed operations. During the shutdown period, Tesla paid full wages to factory employees, but the subsequent impact has not dissipated. Some employees have asked the manager if wearing Tesla clothing outside the factory is dangerous.
Musk recently personally visited the Berlin factory for inspection and was warmly welcomed by the employees. He boosted employee morale in his speech and stated that opponents cannot stop Tesla. Local government officials have also expressed support for Tesla.
But the resumption of power supply to the factory does not mean that the debate has been quelled. Opposition leaders are demanding a spokesperson to explain how the country has benefited from the Berlin factory and what kind of environmental disaster the factory site is experiencing.
In addition to the troubles arising from the manufacturing side, Musk's dream of autonomous driving continues to face ethical challenges from public perception. He vowed to completely change the way humans travel, constantly claiming over the past seven years that fully autonomous driving is coming, although there is still no Tesla on the road to fulfill its promise.
For a long time, this feature has only been tested in North America and cannot achieve fully autonomous driving. But recent developments suggest that Musk is indeed further away from his goal. The EU has confirmed that the Tesla FSD European version will be launched in 2025, and there are also reports that the Chinese version is expected to be released this summer.
This has also sparked a new round of discussion. The Texas Public Policy Foundation recently raised concerns about autonomous driving, stating that people are concerned that autonomous driving may leak its whereabouts and limit personal mobility, and warned that "dystopia" is imminent.
Unlike his previous firm belief that the era of fully autonomous driving is "coming" soon, Musk's response this time indicates that it will take at least 10 years for most cars on the road to achieve this function.
In addition to the unrealized vision of fully autonomous driving, Tesla is also facing major unfavorable factors this year, including intensified competition for electric vehicles, slowing global demand, and price wars in major markets.
Musk previously predicted that the company's sales growth this year would significantly slow down. Last year's financial report showed Tesla's first annual profit decline since 2017, sparking investor concerns about Tesla's prospects.
On Wednesday of this week, Wells Fargo Bank significantly lowered Tesla's stock target price from $200 to $125, and expects this year's earnings per share to be 32% lower than expected, citing the company's price reduction strategy as difficult to stimulate consumer demand. On the same day, Deutsche Bank and UBS lowered their target prices by $32 and $60 respectively.
As a result, Tesla's stock has experienced a cumulative decline of 8.6% over the past two trading days, with a market value of approximately $47.9 billion (approximately RMB 344.6 billion) evaporating. Within the year, Tesla's stock price has experienced a cumulative decline of nearly 35%.
Tesla's long-term investor and CEO of Geber Kawasaki Wealth Management, Ross Gerber, stated on Thursday that in order to salvage Tesla's plummeting stock price, Musk will either change his behavior or be replaced. Earlier, he claimed that more and more customers were demanding the sale of their Tesla shares.
In the world's largest automotive market, Tesla will also face new challenges, as its price reduction actions are becoming increasingly unnoticed.
An automotive analyst told Interface News that the price war in the Chinese market is indeed brutal, and it is currently difficult to predict when it will come to an end. If there are no external factors affecting it, it is difficult to terminate the low price competition solely based on the spontaneous actions of automobile manufacturers. This also means that Tesla will still face fierce price shocks in China in the short term.
Musk believes that Tesla's next wave of growth is expected to come from cheaper next-generation electric vehicles, driven by the development of Model 3 and Model Y. However, investment bank Evercore believes that due to the challenge of production capacity, the affordable Model 2 model will not be able to fully assist Tesla in achieving another leap in scale before 2027.