Elon Musk sought to reassure Tesla employees during what he referred to “a little bit of stormy weather,” after the carmaker’s shares plunged more than 50 per cent in just three months.
“If you read the news, it feels like Armageddon,” Musk said during an all-hands meeting broadcast late Thursday on X. The chief executive officer joked that he can’t walk past a television without seeing a Tesla on fire, then mocked his detractors. “I understand if you don’t want to buy our product, but you don’t have to burn it down. That’s a bit unreasonable.”
The CEO then launched into a familiar pitch that Teslas will soon be capable of driving autonomously. Although the company has yet to execute on his predictions – Musk recently referred to himself as “the boy who cried wolf” – he reiterated a claim he’s made at least as far back as 2016 that Teslas are an eventual software update away from self-driving.
“What I’m saying is hang on to your stock,” Musk said, pausing for applause.
Tesla shares fell as much as 1.4 per cent to $233.06 before the start of regular trading Friday. The stock has plummeted from a record high of $479.86 on December 17.
The vandalism Musk alluded to has been part of a growing backlash against Musk’s role in US President Donald Trump’s administration. Protesters have targeted the company’s showrooms, vehicles and charging stations in the US and across Europe.
Tesla deliveries typically are slower in the first quarter, but both sales and shipments have dropped precipitously in key markets early this year. In addition to political pushback, another factor at play has been the company pausing production of its most popular vehicle – the Model Y – to rework production lines and begin making a redesigned version.
“How are we doing on popularity? Well, we actually literally make the bestselling car on Earth, of any kind,” Musk said of the Model Y.
Tesla has said it will launch new, more affordable models in the first half of this year, but has offered little detail about what those vehicles will be.
Blowback against Musk spurred Trump to arrange a parade of Teslas on the South Lawn of the White House. This week, Commerce Secretary Howard Lutnick went on Fox News and urged viewers to buy Tesla shares. “It’ll never be this cheap again,” Lutnick said, potentially violating ethics rules.
“There are times when there are rocky moments,” Musk told Tesla employees. “But what I’m here to tell you is that the future is incredibly bright and exciting, and we’re going to do things that no one has even dreamed of.”
Dan Ives, a Wedbush Securities analyst and long-time Tesla booster, said the meeting was a “first step for Musk to show he is going to lead Tesla through this tumultuous period.”
Ives earlier this week issued a rare rebuke of Musk, urging the billionaire to pull back from the Trump administration and refocus on Tesla. He warned that brand damage had escalated into a “tornado crisis moment for Musk and Tesla.”
When asked by an employee whether he would get into aviation, Musk said it’s something he’s considered.
“I’ve thought about aircraft designs for a long time,” he said, musing about creating an electric vertical take-off and landing craft. “Maybe we’ll do that.” – Bloomberg
