As the electric vehicle market continues to grow, Elon Musk‘s unpredictable behavior is being highlighted as one of the top risks for Tesla Inc. TSLA, Bloomberg reports.
What Happened: A recent Markets Live Pulse survey revealed that 26% of the 630 global contributors identified Musk’s unpredictable behavior as a key concern for Tesla shareholders.
"Musk is just such an unpredictable person, that I would count it among one of the top risks for Tesla," said Matthew Tuttle, CEO of Tuttle Capital Management.
Amidst these concerns, Tesla is also facing increased competition in the EV market.
See Also: Elon Musk Threatens To Unfollow A Subscriber If They Keep Posting About It
Why It Matters: Despite Tesla’s current lead in the EV market, rivals such as China’s BYD Co. are gaining momentum. Analysts warn that Tesla’s advantage can quickly erode as government policies encourage other automakers to embrace EVs.
Furthermore, 63% of the survey respondents expect Tesla to continue lowering prices to capture higher volumes, potentially impacting its profit margin. The impact of recent price cuts on Tesla’s profits will be revealed this Wednesday when the company reports its second-quarter results.
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