There was a time when it seemed Tesla could do no wrong. In little more than a decade, it went from technology upstart to mass-market carmaker, invested billions in its clean energy business, and saw its value rocket. But now the company is struggling with falling car sales and intense competition from Chinese brands, as well as problems with its much-hyped Cybertruck.
Lower sales have hit its revenues, and hurt its profits. Its share price has fallen by more than a quarter since the beginning of the year.It has cut prices in major markets, and is in the process of laying off some 14,000 employees - 10% of its global workforce. Those affected include senior executives and the entire team responsible for its much-admired supercharger network.
"It's about breaking a spell," explained Elon Musk to a specially invited audience at Tesla's California factory back in June 2012. "The world has been under the illusion that electric cars can't be as good as gasoline cars," he said. Musk was speaking at the launch of the new Tesla Model S, a car he insisted would shatter that illusion. It was no empty promise.
Other companies, like China's Nio, are offering more exciting products, says Prof Wells, while fellow Chinese firm BYD offers good performance at lower prices. "Basically, the world has caught up with Tesla," he says.
