Companies like Tesla, which rely on high growth expectations, are particularly vulnerable to changing market sentiment. The competitive landscape in the EV market has evolved rapidly. Legacy automakers like Ford and General Motors are investing heavily in their EV divisions, while new entrants like Rivian and Lucid Motors continue to attract attention and investment. Tesla has also faced production and delivery challenges, partly due to supply chain issues and logistical constraints. While production has increased, delivery delays and missed targets have raised questions about its growth trajectory. Furthermore, Elon Musk's acquisition of Twitter (now known as X) and controversial public statements have made some investors uneasy. Concerns about his focus and management style have led to speculation that Tesla may struggle to maintain strategic direction. Amid these challenges, Tesla recently made a strategic $500 million investment in its EV charging network.