Elon Musk's distraction is just one of Tesla's problems

Electric carmaker faces fierce competition, plummeting stocks and production issues as its chief executive worries about Twitter.

Production headaches on three continents. Intensification of competition. A plummeting stock price. And an absent-minded CEO, seemingly determined to alienate some of the company's most loyal customers. mystique as the technology leader in the segment, leading analysts and investors to wonder if it can continue to dominate the electric vehicle market.

At the center of attention Among the investors is Elon Musk, the chief executive, whose high-profile purchase of Twitter eclipsed his role in Tesla at a critical time in the automaker's relatively short history.

Tesla is working to ramp up production at new factories in Austin, Texas, and outside of Berlin. Covid restrictions and dysfunctional supply chains, a problem for all automakers, have led to intermittent shutdowns at Tesla's Shanghai factory.

So as interest rates rise and a global recession looms, demand for Tesla vehicles appears to ease. Just a few months ago, potential buyers had to wait months for a new Tesla. Now cars are available within days, which analysts see as a sign of weaker demand.

Yet Mr Musk is concerned about Twitter a company he admits to buying at an inflated price. Last weekend, he asked users of the service in a "poll" whether he should step down as Twitter's chief executive, saying he would respect the results. A majority of those who responded said yes.

On Tuesday, Mr. Musk said he would step down as Twitter's chief executive "as soon as I find someone crazy enough to take the job!" But he also said he would continue to manage the software and server team.

Managing Tesla "isn't a part-time job these days. unstable and challenging times," said Axel Schmidt, Accenture's senior managing director who oversees the consulting firm's automotive division.

Tesla did not respond to a request for comment.

Mr. Musk remains widely admired in the automotive industry for the way he proved battery-powered vehicles could be stylish, fun to drive and cost-effective. Tesla's success has forced automotive giants like General Motors, Ford Motor and Daimler to respond with their own electric models.

Mr. Musk personifies Tesla as much as Henry Ford once personified the automaker that bears his name. As co-founder, CEO and largest shareholder, Mr. Musk is able to make decisions quickly and has built a big lead over traditional automakers in battery technology and software.

But it's unclear who's tending the store while Mr. Musk tries to remake Twitter. Tesla does not publish any management pyramids. The company's website lists only three senior executives: Mr. Musk; Zachary Kirkhorn, Chief Financial Officer; and Andrew Baglino, senior vice president responsible for engineering.

Mr. Musk "has such a big personality, it feels like the business is weak without him and nothing happens without his approval," said Garrett Nelson, senior equity research analyst at CFRA, a research firm in investment. (Mr. Nelson added that he disagreed with this view.)

And now that mainstream automakers are selling credible electric vehicles , Tesla no longer has the market all to itself.< /p>

In the United States, electric vehicles from Ford, General Motors and Hyundai have eaten away at Tesla's lead . Competition will intensify this year with the introduction of models like the Cadillac Lyriq and Nissan Ariya.