The Tesla Tumble with Twitter drama, Tesla stock has been on a roller coaster ride lately,
with investors fearing the impact of Elon Musk’s Twitter dramas and the potential loss of China sales.
Topics
Tesla’s Troubled Times
The Impact of Elon Musk’s Political view
Navigating Uncertainty
Tesla’s Troubled Times
The electric car maker’s shares have plunged more than 10% in recent weeks as concerns mount about its prospects.
The controversy began when Tesla CEO Elon Musk tweeted that he was considering taking the company private at $420 per share,
which sent shockwaves through Wall Street and sparked an investigation by US regulators into possible market manipulation.
Although no charges were filed against him or Tesla,
many investors felt uneasy about his erratic behaviour and withdrew their investments from the company’s stocks.
Adding to investor worries is news that Chinese demand for Tesla
could be waning due to increased competition from local automakers such as NIO Inc.,
who are offering cheaper models with longer-range batteries
than those offered by Tesla in China right now.
This could lead to a significant drop in revenue for Tesla if they can’t keep up
with their competitors’ offerings or find new ways to attract customers back into showrooms again soon enough,
something they haven’t had much success doing so far this year despite launching several new models recently including Model 3 Performance Sedan & Model Y SUV crossover vehicle.
Investors remain concerned over these issues even after reports emerged last week that Saudi Arabia’s sovereign wealth fund had acquired a stake worth around $2 billion dollars in early 2018 – though it remains unclear how much influence this will have on helping stabilize declining stock prices going forward given current events surrounding both companies involved (i.e., SpaceX).
At any rate, it looks like things are not looking too good for investors hoping for quick returns from investing in TSLA shares at present time; however only time will tell what comes next down line.
The Impact of Elon Musk’s Political view
“Tesla stock price now reflects the value of having no CEO. Great job tesla BOD – Time for a shake-up,” tweeted Ross Gerber, a portfolio manager at Gerber Kawasaki.
When Elon Musk made some controversial statements in the past, and his recent political rhetoric is causing some investors to worry about its effect on the brand. But while it’s true that people may be cancelling orders or not ordering Teslas due to Musk’s comments, is this enough to cause a significant drop in favour among electric vehicle buyers?
The answer appears to be “no,” according to one institutional investor.
Black believes that eventually, Elon Musk’s personality will have an impact on the brand,
but only if he doesn’t stop making these kinds of comments.
He suggests advising him “to pull aside and say:
‘You may have these political views, but you’re not helping the Tesla brand by articulating them.’”
It seems like common sense advice; after all, most businesses understand how important it is for their public image when executives express themselves publicly – especially those as high-profile as Tesla CEO Elon Musk. While there are certainly valid concerns over whether his words could hurt sales or damage the reputation of the company itself (or even just himself), it looks like right now at least they haven’t caused any major issues yet – so perhaps with a little more discretion from Mr Musk, we can avoid any further damage being done!
After recently posting a Twitter poll asking if he should step down as CEO of the social media platform, the results came in overwhelmingly in favour of him leaving.
This prompted Musk to say that he believes bots rigged the poll,
though there have yet to be any concrete reports on this matter.
Navigating Uncertainty
With all this uncertainty surrounding his role at Tesla, investors are understandably worried about what will happen next with their investments. Many have called on Musk and Tesla to buy back some stock as a way of demonstrating that they believe it is too cheap right now – but so far, no such move has been made by either party involved here.
At present time it seems like nobody really knows what’s going on or when we’ll get some more clarity from either side,
which makes investing in companies like these even riskier than usual! It’s important for us all to keep an eye out over the coming weeks and months ahead; only then will we know whether Elon does indeed decide to step down from his position at Tesla (and who might replace him). Until then, however, let’s just hope that things don’t become too turbulent during this period.