Tesla’s 2022 has been rough, to say the least.

all from Economyto inflation,What Russian invasion of Ukraine It hit electric car makers and the rest of the tech industry and the auto industry at large. But here’s what company CEO Elon Musk has done recently: his reluctant Twitter purchase, It just dragged the beleaguered Tesla into the deep recesses of the financial crisis.In fact, Tesla almost lost 70% of market capitalization for the past year.

Exactly one year ago the company A staggering $1 trillion valuation, it seemed unmistakable.partly Doubts over Musk’s leadershipothers have gone further — speculating that this may just be the beginning of the end for Tesla.

The impact the company has had on both the production and sale of electric vehicles is undeniable. After all, you have achieved what once seemed impossible. In fact, it convinced the public that EVs are pretty cool. Now, traditional automakers are catching up to get customers to buy their own interpretation of electric vehicles.

Tesla revolutionized the way the world sees and drives EVs, but with its back against the wall and tweets making its financial situation look increasingly bleak, the biggest name in the game is gone. You may notice the situation immediately. get angry

Let’s be clear, the chances of that happening are pretty low…but what if it does?

How to make (and burst) an EV bubble

To understand how Tesla’s demise will affect the future of EVs, it’s important to understand exactly how we got here.

“I have a lot of credit for Elon Musk. researcher Ragunathan “Raj” Rajkumar told The Daily Beast. “People associated them with someone who was transforming the auto industry and doing the right thing for the planet.”

But this was a double-edged sword. Musk promoted Tesla through lofty (albeit slightly unrealistic) promises and his silly Twitter posts.he raised an army Elon Stance Willing to go to war online for him to protect the company from the slightest trifle. Meanwhile, the car finally sold well. All of this, like so many of his SpaceX rockets, resulted in the perfect mixture to fuel the rise of Tesla stock into the stratosphere.

But its value has always been tenuous at best. It’s not that other automakers haven’t made electric cars. As such, Tesla’s market capitalization has become a bubble of epic proportions.

One person with a needle was Musk himself. He got his hands on it by buying his favorite social media platform, Twitter.

“It was just silly,” added Rajkumar. “At the end of the day, business should be business. Sooner or later, what goes up must go down.

There is also a fundamental economic factor. Overall demand is low due to the economic downturn. Plus, the market looks a lot different than it did a year ago. Tesla is no longer the only horse in the race. The EV industry is now much bigger and more competitive, so it was only a matter of time before Musk’s company started to feel the pressure.

A world without Tesla

Given Tesla’s huge impact on the auto industry and consumer habits, there is no doubt that it will have a significant negative impact on the future of EVs.

“If Tesla goes bankrupt and goes out of business completely, I believe there will be a dance on the streets of all the giant corporations. [automaker] On Earth,” Sandy Munroe, an independent automotive engineer, consultant and industry expert, told The Daily Beast.

Munro is known for its famous teardown reports that provide incredibly detailed analysis of various vehicles.his glowing review 2020 Tesla Model Y As a result, he became bullish not only on the company’s future, but also on electric vehicles in general. A few years ago he predicted his EV would make up for it. Over 50% of all vehicles on the market by 2030With Tesla’s success, he updated that prediction to 2028.

However, Munro concedes that if Tesla goes bankrupt, neither prediction will likely come to fruition, “definitely moving away from EVs.”

That’s because, for him, Tesla’s demise would extinguish the proverbial fire under the butts of all legacy automakers, motivating them to go back to the old instead of pivoting to new emerging technologies. There is no longer any pressure to build and devote much of its resources to research and development of batteries, charging stations and electric powertrains. Even regulators have much less incentive to make changes to domestic transportation and energy infrastructure.

All in all, we’re going back to our gas-hungry, greenhouse gas-emitting normal state. “If Tesla goes out of business, we’ll have to watch how fast Keystone’s pipeline goes through,” Munro added.

Rajkumar’s assessment is less dire. He believes the technology and innovation that Tesla has championed will eventually follow. After all, consumers already want EVs more than ever.and that number is expected to increaseCar companies have also seen this and are ready to take advantage of it.

“Right now, the global automotive industry is focused on EVs, with many companies publicly announcing they will switch to fully electric product lines. . However, he acknowledges that it’s not clear whether many of the goals outlined by these automakers are realistic due to inadequate charging infrastructure and low consumer penetration of EVs.

The only real winner to emerge from Tesla’s death will be China. The country is already making concerted efforts to electrify its transport infrastructure, with the goals of: 40% of all vehicles By 2030, EVs will be sold in Japan and sufficient charging stations will be in place. Over 20 million vehicles.

Munroe said this could create a kind of geopolitical turtle and rabbit situation, with China catching up and soon being much more exponentially more advanced than the Western world, eventually We will surpass the sleeping United States with technologies such as EVs that are vital to our joint future.

“China will survive,” explained Munro. He added that US EV could reach a relatively low point because of its focus on short-term gains.

Tesla will die another day

Tesla’s future may seem a little uncertain, but it has a good chance of surviving the current recession. Sure, he may not reach his $1 trillion peak that he achieved last year (at least for the time being), but he will probably pull through this.

“There’s no way Tesla will collapse,” Munro said. “It’s not going to happen.” He added that there are two main reasons the company keeps moving forward.

The first is actually Musk. While many may have been annoyed by his Twitter antics (including Tesla’s chief stock investor), the industry the world will depend on the most in the future. His contribution to revolutionizing and championing electric vehicles and space travel is undeniable. If he can separate himself from the social his media his albatross has around his neck, he may be able to usher in his rapidly congested EV market and Tesla into 2030 and beyond.

The second, according to Munroe, is children. Yes children. He believes that more than any other market indicator, stock price trend, or McKinsey consultant, children pinpoint the path to the future of cars, and, by extension, things like Tesla.

“When you talk to kids, you suddenly know what they don’t like,” he said. “I don’t like the smell of gasoline. I don’t like the black smoke coming out of my car. I want to do more for the environment.” ”