Tesla investors are experiencing mounting concerns about the company’s future prospects. While vehicle sales have been bolstered by steep price cuts, the eagerly anticipated Cybertruck is projected to be unprofitable for its first year, while there remains no clarity on when Tesla’s affordable $25,000 entry-level vehicle will be released.
Adding to the distress, Tesla’s CEO, Elon Musk, appears to be absent during these challenging times, according to outspoken Tesla supporter Ross Gerber, co-founder of the fund management firm GerberKawaski. Gerber criticizes Musk for seemingly prioritizing his social media project, “X,” at the expense of Tesla’s well-being.
Gerber emphasizes that Musk’s actions are not currently in Tesla’s best interest and claims, “he’s destroying everything he’s built, and that is the super frustrating thing as a shareholder.”
While Musk is expected to attend the forthcoming Cybertruck delivery event on November 30, where sales for the pickup model will commence, an undisclosed health issue prevented him from attending a crucial meeting with an official from Narendra Modi’s government. The discussion aimed to secure a significant investment in India, which could potentially drive substantial volume growth for Tesla.
Musk’s controversial political views have also contributed to investor unease. This week, he faced criticism for endorsing an antisemitic post on social media platform X. This endorsement has prompted concerns among some shareholders, with one investor stating, “Elon Musk has to stop the antisemitic remarks before he damages the Tesla brand.”
Institutional investor Gary Black has also expressed his concerns, even though he is a firm believer in Tesla and holds it as his second-largest position. Black underscored Musk’s need to address the issue, stating, “Two of my Jewish clients reached out to me this morning to express their outrage.”
As of now, Tesla has yet to respond to these recent events.
Why are Tesla investors worried?
Tesla investors have expressed concerns about vehicle sales, profitability of the Cybertruck, and the delayed release of Tesla’s affordable entry-level vehicle.
Where is Elon Musk?
Elon Musk’s absence during challenging times has raised concerns among investors.
How has Musk’s social media project affected Tesla?
Elon Musk’s focus on his social media project, “X,” has led to criticism that he is neglecting Tesla’s best interests.
Why did Musk miss a key meeting in India?
Musk was unable to attend an important meeting with an official from Narendra Modi’s government due to an undisclosed health issue. The meeting aimed to secure a significant investment for Tesla in India.
What controversy has Musk been involved in this week?
Musk has faced backlash for endorsing an antisemitic post on social media platform X.
What have institutional investors said about Musk?
Institutional investor Gary Black has urged Musk to address the issue of his controversial political views, as it may damage the Tesla brand.
Has Tesla responded to recent events?
Tesla has not yet responded to requests for comment regarding these recent events.