Tesla Faces 63% Sales Drop Amid Increased Competition

Tesla is facing significant challenges as sales have plummeted, with a 63% drop in France and nearly 50% in China compared to the previous year. The company's stock has also seen a decline of about 20% over the past nine weeks, raising concerns among investors about Elon Musk's focus on Tesla amidst his other political engagements. In response to these issues, Tesla is planning to launch a driverless taxi service in California, which aims to attract customers with its autonomous technology while potentially revitalizing the brand. This comes as competition intensifies, especially from Chinese automakers like BYD, which are outpacing Tesla's current capabilities. Additionally, analysts have likened Tesla's situation to a 'Blackberry moment,' indicating the risk of rapid decline if the company fails to innovate and adapt to market changes. Despite these hurdles, Tesla remains the leading U.S. electric vehicle manufacturer with a market cap surpassing its competitors combined.