It’s been a year of ups and downs for Elon Musk, but the collected A statistic about the companies he’s most often associated with may raise some concerns for the world’s richest man. Musk currently owns several well-known businesses, including Tesla, SpaceX, and The Boring Company. The South African billionaire also co-founded Paypal and is a strong supporter of Open AI, a nonprofit based on artificial intelligence development and research.
One of the big positives for Musk has to do with the recently passed Inflation Reduction Act . The bill changes the way tax credits are applied to the purchase of new and used electric vehicles. While the exact rules don’t appear to have been properly considered, and currently available vehicles may not be eligible for full or even partial tax credits, Musk would still benefit. The old system had a threshold: The tax credit could only be claimed for the first 200,000 eligible electric vehicles the company sold. Perhaps unsurprisingly, since Tesla has historically been the most successful electric car maker, it hit that threshold long ago — Tesla was actually the first company to do so in 2018.
All vehicles sold thereafter are not eligible for tax credits. So the current eligibility factor won’t affect Tesla in the short term, but it could affect the company’s competitors — GE and Toyota are the only two to pass the old threshold. But the real victory came from another provision of the bill. The cap on tax credits has been completely removed. Once the other conditions of the bill are met, Tesla buyers will again be able to request a refund when purchasing the vehicle.
Most of Musk Net worth is all tied to Tesla stock. Some of those shares were used as collateral when Musk raised money for his proposed purchase of Twitter, and it was Tesla’s surge that earned him the title of “world’s richest man” in the first place. Musk owns about a quarter of Tesla, which has a market value of just under $900 billion, according to Forbes. So obviously, any bad news for Tesla is bad news for whoever owns it, which is why Musk may be concerned about the drop in traffic Tesla has faced in recent years.
People statistics collected by DataHerald for SlashGear show that since the coronavirus pandemic leading to mass blockades. Unsurprisingly, April 2020 saw the lowest footfall in Tesla showrooms as these lockdowns kicked in. Average foot traffic has picked up, but at best it is still around three-quarters of what these areas experienced before the pandemic. There was also a worrying decline this summer. With foot traffic falling below 20,000 for the first time since June 2020, the post-pandemic recovery period is likely to end.
For the purpose of this study, footfall is defined as visiting a place and staying Four minutes or more. It does not require an individual to purchase or use one of the company’s services. However, since Tesla dealers are not located in malls, it is unlikely that many people will show up to browse the offerings and kill a few minutes.
The entire automotive industry has been affected by a series of global crises Impact. First, the pandemic shut down showrooms and production facilities, and then a global semiconductor shortage wreaked havoc on supply lines. Despite growing demand, overall car sales have declined in the wake of the pandemic. While the sales charts don’t exactly overlap with the drop in traffic at Tesla stores, the two problems may have a common cause.
Pandemic and semiconductor shortages likely hit Tesla harder than most others company is more serious. The manufacturer’s vehicles are nearly all electric, so while a company like Dodge could try to address the supply line problem by reducing the number of features its vehicles are equipped with, Tesla may not have that option. The automaker has no mechanical underpinnings to strip, and its customers expect outlandish features as standard. Then there was the pandemic, which didn’t go away and caused major problems for Tesla earlier this year. Production at the Shanghai plant, one of the company’s main suppliers, has dropped sharply due to the shutdown. The lack of supply has caused Tesla’s share of global EV sales to plummet from 27% to just 10%. It also saw the company temporarily ousted from its position as the world’s largest supplier of electric vehicles.