Elon Musk’s Plea to Tesla Employees: A Turning Point for the Tech Giant
The Fall in Share Prices
Following a turbulent year, Elon Musk, the CEO of Tesla, held an internal meeting where he urged his employees to hold onto their shares. This appeal came amidst a 37% decline in Tesla’s share price, which translated into a market value drop from approximately $1.2 trillion to $740 billion in less than three months. The freefall was linked to several factors, one of them being Musk’s prominent support of former U.S. President Donald Trump.
Migration of tech professionals didn’t save Musk from sinking of Tesla’s shares
Elon Musk’s public stance on political issues, notably his support for Donald Trump, has significantly impacted Tesla’s stock performance, causing some customers and investors to express concern. The company has seen violent reactions, including vandalism threatened to Tesla agents, which prompted the FBI to open an investigation.
The Editorial
Elon Musk’s Plea to Tesla Employees: A Turning Point for the Tech Giant
To encourage his employees to maintain their shares, Elon Musk emphasized that the current media narrative is negative. He stated that while the recent media coverage of the company felt ‘ apocalyptic ‘, he was certain that the company’s future prospects are strong. This claim is backed by Tesla’s estimated Self-driving growth from a baseline of one million cars to five to fifteen times that in the future, a ‘deep change that cannot be compared to anything in the past’ according to Musk.
In a statement to Staff
During the meeting, Musk expressed the same sentiment by saying, " If you read the news, you will feel like the end of the world. I see Tesla cars burning on TV and wondering: What is happening?" He further lambastedists who burned Tesla cars, calling it a "disturbing behavior."
In addition to that, Musk also highlighted the company’s ambitious projects, most notably ‘Tesla Bot, or Optim’", which is able to manufacture large-scale smart robots. Also looking optimistically, Musk estimated that this machine could become the most innovative product ever launched by the tech company. Currently, he intends to introduce this product to the mass market in 2026.
Note: Elon Musk responded this way when if like the question: Could Tesla rebound after a brutal five-month period of stock underperformance?
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Despite this and more positive remarks, Tesla’s future seemed clouded.
Nonetheless, Musk and many believe everything will be fine. That doesn’t save Tesla from skeptical customers.
Worse, because of the negative market sentiment and bearish outlook, Musk is forced to spend more money to increase his firm’s cash reserves and invest in innovation.
Pending risks
Based on this analysis, there are several risks pending for investors. One risk is that Tesla’s business models tend to run on red ink more than black, and he could be right that late 2026 will unite investors and make them weigh a favorably skewed balance.
Pro Tip
The second risk comes for the same production of EVs that contains raw materials that might sour when the transition speeds up and excess supply accentuates the market affordance of raw materials.
Table: Tesla’s Market Performance
| Period | Share Price Change | Market Value Change |
|---|---|---|
| Start of the Year | 100% | $1.2 trillion |
| Mid-Year | 63% | $740 billion |
| End of the Year | 85% | $550 billion |
FAQs
Why did Tesla’s share price decline?
Tesla’s share price declined due to a combination of factors, including Elon Musk’s public support for former U.S. President Donald Trump, negative media coverage, and violent reactions from certain groups.
What is the Tesla Bot, or Optimos?
The Tesla Bot, or Optimos, is an ambitious project by Tesla to create a humanoid robot. The company believes they have the expertise to produce large-scale smart robots. The eventual mass market release of this machine is slated for 2026 with company employees getting priority to secure it.
What does the future hold for Tesla?
Analysts have given different opinions. Musk ensured his employees that Tesla will continue to thrive while others question the extent while having to look at its continued profitability despite headwinds like its CEO.
Reader Question:
What do you think will be Tesla’s next innovative step. Be insightful.