Can Tesla Survive a Recession?

If you think about electric vehicles, the first one that will probably come to your mind is ‘Tesla’. Tesla has grown to become an automotive industry giant, and the company has expanded at a rate that no other automaker has been able to achieve. This enormous success was driven by a few key features which include the charismatic personality of CEO Elon Musk, an increased consumer desire for environmentally sustainable products, and an incredibly strong economy with high consumer confidence. However, the current economic climate is changing. Covid-19 has essentially grounded some economies to a halt, so much so that over 31 million Americans have filed jobless claims within recent times. This means that over 31 million individuals would most likely severely reduce their spending, and they clearly will not be purchasing an electric vehicle any time soon. The lack of spending caused by the novel coronavirus has a trickle-down effect which could potentially lead to a recession. Recessions can be quite devastating as they create wide-spread unemployment and uncertainty within economies, especially because companies now run a higher risk of going bankrupt. So, despite its current success, Tesla [and the entire auto industry] is about to face one of the most challenging periods yet. But there are also key features which set Tesla apart from other automakers, and these features can make them better equipped to withstand a…