Tesla owners and Elon Musk are being taught a hard lesson about recalculation

Teslas decision to cut prices by up to 20 on Thursday is unlikely to have calmed investors concerns about the companys future In addition to upsetting customers who felt duped after purchasing vehicles at earlier prices, the move has many Tesla observers whining about revaluation and the companys and its mercurial CEO Elon Musks alleged errors

Tesla reported deliveries earlier this month that fell short of Wall Streets expectations despite giving discounts to American customers

Former congressional candidate and software engineer Brianna Wu discussed Teslas price cut and its effects in a Friday Twitter thread

Wu has occasionally been a pain in Musks side She dared him to post a poll on Twitter asking if people wanted him to step down as CEO of Twitter amid his chaotic redesign of the social network last month He did so, and most survey participants thought he ought to Once he finds someone foolish enough to take the job, he then vowed to resign

She also made fun of him on Twitter for losing over 200 billion in 2022, writing, You worked hard this year and lost I think youll make even worse choices this year than you did last She mentioned that she had a Twitter Blue subscription, to which he replied, Thanks for paying me 8

Wu wrote on Friday that Teslas 13,000 price cut would ultimately ruin the company at the top of her Twitter thread To start, each cars profit margin will drastically decline, which will have a significant impact on their revenue sales to increase, but earnings to significantly decline

The sharp price reductions over the past week have been upsetting for Tesla owners who want to sell their cars One who spoke with Fortune claimed that although he initially listed his 2018 Model 3 with the Full Self-Driving Beta software package for around 51,000, he would likely drop the price to 30,000

Wu also predicted that there would be a glut of dirt-cheap Teslas on the road, bought by individuals who might not be able to afford repairs, which can be infamously pricey for Tesla One customer decided to blow up his Model S in a YouTube video in late 2021 rather than pay 22,000 to fix it

She anticipated “horror stories of working class people buying these things, and having the battery packs fail, and not having 10-15,000 of cash to fix them”

It isn’t just Tesla customers feeling like they and their vehicles have been revalued Musk’s net worth is still tied to Tesla stock, which in 2021 topped 400 but now sits below 130 Some Silicon Valley insiders anticipate an IPO for SpaceX’s Starlink this year, in part so that Musk can give himself some “breathing room”

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