Tesla's Biggest Challenge Isn't Building More Cars
Tesla (NASDAQ: TSLA) is no longer a start-up automaker that doesn't have to play by the same macroeconomic rules as the rest of the auto industry. The EV specialist is building over 1 million vehicles per year, and if the auto industry collapses during a recession, there will be fallout at Tesla this time around.
Recent data from the St. Louis Fed shows that sales of vehicles have dropped off in recent months. You can see below that the annual rate of 13.47 million vehicle sales in June 2022 is down from a peak of 18.78 million in 2021 as we started to come out of the pandemic. But there could be more headwinds from the economy as interest rates rise and the labor market gets weaker.
Image source: St. Louis Fed.
Source Fool.com
