Tesla is one of the popular Brands which deals with electric cars, engine cars, and more different solar devices. It is an accelerating company, which is releasing brand new cars and solar products in the market continuously. It is an American company, exporting their business all over the world.
No doubt that when Tesla launched electric cars, it became a desirable car for many of the car lovers and car agencies. As this was something new so everyone wanted to try this and sell it through their agency. Well, slowly electric cars were there in every agency to sell it.
We all know what Tesla stock (NASDAQ TSLA) was going through when they launched electric cars, they faced a lot of failures and the company was at a great loss in every aspect. Elon Musk has explained his state and what the company was going through when they launched electric cars, he even said that the company was almost on the map of Bankruptcy.
Let’s know about the situation, of the company and the stock market during their bad times
CEO of Tesla said the company was almost on Bankruptcy
Elon Musk said about his condition when the electric cars were launched, then it did not go well in the market. The company took loans from many different banks and borrowed the money too. The company never thought that the company will ever face this big loss ever.
He said that the problem started when the company launched its model 3, of the electric car thinking that it would be the cheapest car. After the launch, the sales of the car started to decrease consecutively, and at the same time, the production of the company also started to decrease. As a result, the company started to face a great loss, and here is all that began.
The same happened with the stock market of Tesla when the company was going in less than the market value of the tesla also decreased. The customers stopped buying stocks from the company. Due to this, the investors were worried and it became very difficult for them to raise the fund for the electric cars.
He said that everything was balanced, which means the company was saved from bankruptcy from before one month. The state of the company was that dangerous that even the CEO of the company started to live in a rented house. It also affected the reputation of the company because of its great loss. It took the company a few years to come back on the track, and balance all the losses added by Elon on his Twitter account. You can learn more from TSLA news.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.