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Why Tesla’s Current Product Strategy Struggles to Keep Up With Today’s Global Reality

Written by Melissa Yap

Unlike Amazon, it looks like the mass exodus from city to suburb, and suburb to rural isn’t doing all companies a favor. American electric-automobile manufacturer Tesla is hurting, as evident in their recent dip in stock price.

Why is America’s Mass Move Hurting, Instead of Helping Tesla?

SteelHouse CEO Mark Douglas appears on FOX Business to explain why Tesla’s product strategy isn’t quite keeping up with the times. “When people move to small towns, they tend to buy bigger cars – and Tesla’s product strategy I don’t think is key to what’s actually happening in America, where everyone is reconsidering where they want to live.”

Douglas indicates that Tesla’s target market trends toward young, professional urbanites, who won’t consider it an option when moving out of the city, as it is not only expensive but doesn’t offer the same utility that can be otherwise found in alternative vehicles.

But Why Does Has the Stock Price Been Trending Up, Up Until This Point?

Prior to this dip in stock price, Tesla had seen the “stock price going to the moon” says Mark Varney, host of the Varney & Co news segment on FOX Business. However, it is the public’s perception of Tesla as a car of the future that is driving these gains.

“All it takes is a little shift in what consumers want to have a big impact on Tesla’s sales and their bottom line,” Douglas continues. “Tesla is going to have to adjust their product strategy to adjust to a world where people are leaving big cities and want a different type of vehicles. They’re not there right now, so it’s going to take some time to get there.”