Tanking Tesla stock costs Musk a lot. Trashing unsold teslas means Tesla makes a lot of insurance claims. Short term that’s as good as a sale, well not really, the insurance only pays the replacement value which is less than the sell value, so it hurts their profits a bit, but it reduces stock and that does help a little. But if there’s a pattern of Tesla dealerships getting entire fleets destroyed, their insurance rates go up, which hurts their profits a lot more. So they’ll raise prices and sell fewer cars, which hurts their entire business.
Once or twice, it’s no big deal for Tesla. If the pattern keeps up then of going to start to squeeze them.
Musk has been a toxic asset for Tesla for quite some time, even before recent DOGE shit. I’m not sure why they don’t remove him. I get that he has majority shares, but there are still mechanisms for removing him.
Tanking Tesla stock costs Musk a lot. Trashing unsold teslas means Tesla makes a lot of insurance claims. Short term that’s as good as a sale, well not really, the insurance only pays the replacement value which is less than the sell value, so it hurts their profits a bit, but it reduces stock and that does help a little. But if there’s a pattern of Tesla dealerships getting entire fleets destroyed, their insurance rates go up, which hurts their profits a lot more. So they’ll raise prices and sell fewer cars, which hurts their entire business.
Once or twice, it’s no big deal for Tesla. If the pattern keeps up then of going to start to squeeze them.
Musk has been a toxic asset for Tesla for quite some time, even before recent DOGE shit. I’m not sure why they don’t remove him. I get that he has majority shares, but there are still mechanisms for removing him.