Tesla’s sales are falling, but Elon Musk appears unbothered.
Asked about sales woes and brand damage at Bloomberg’s Qatar Economic Forum, Musk didn’t cite a turnaround plan or offer numbers. “Just look at the stock price,” he said.
Tesla “wouldn’t be trading near all-time highs” if “things weren’t in good shape. They’re fine. Don’t worry about it.”
Firstly, Tesla remains 30 per cent shy of December’s peak, which isn’t “near all-time highs.” Secondly, Tesla’s stock is driven more by sentiment than fundamentals, by belief in Musk rather than revenues.
It doubled after the US election, then halved, before rising again during the recent market rally.
Many investors aren’t buying the business, they’re buying the promise.
Pressed further, Musk said Tesla “lost some sales paths on the left” but has “gained them on the right.”
That’s questionable, as is his claim that “all manufacturers” are suffering in Europe.
European EV sales surged 24 per cent in March while Tesla’s plunged 28 per cent. Tesla is losing ground while rivals gain.
The interview was marked by Musk’s combative tone. He called UK interviewer Mishal Husain an “NPC” (non-player character, gamer slang for a mindless person), accused her of “liking racist laws” in South Africa, and described the Delaware judge who struck down his $56 billion Tesla pay deal as “an activist cosplaying as a judge in a Halloween costume.”
This is familiar territory with Musk – the siege mentality, deflection of hard but fair scrutiny, and the usual promises about Tesla potentially building “billions” of humanoid robots.
Leaning on the stock price as proof of success ignores falling deliveries and rising competition. For investors seeking substance, it’s far from convincing.
