Musk Urges Tesla Employees to Hold Stock Despite 50% Drop in 3 Months

Elon Musk Reassures Tesla Employees Amid Share Price Plunge

A Little Bit of Stormy Weather

Elon Musk sought to reassure Tesla employees on Thursday, as the company’s shares plummeted more than 50% in just three months. In a virtual meeting, Musk addressed concerns about the company’s performance, acknowledging that "it feels like Armageddon" according to news reports.

A Bold Defense

Musk joked about seeing Teslas on fire on TV, then mocked his detractors, saying, "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." He also reiterated his claim that Teslas are just a software update away from self-driving, a promise he has made since at least 2016.

A Call to Action

Musk reassured employees, "What I’m saying is hang on to your stock." He also pitched the company’s future plans, including the development of autonomous driving technology.

Challenges and Controversies

The company has faced a series of challenges, including slower sales and shipments, particularly in key markets. Additionally, Tesla has been the target of vandalism and protests, as well as controversy surrounding its CEO’s role in the Trump administration.

New Models and Production Line Revamp

Musk discussed the company’s plans to launch new, more affordable models in the first half of this year, although details are scarce. He also addressed the recent pause in production of the best-selling Model Y, which is being reworked to produce a redesigned version.

A Glimmer of Hope

Despite the challenges, Musk remains optimistic, telling employees, "There are times when there are rocky moments. 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."

Analyst’s Take

Wedbush Securities analyst Dan Ives, a longtime Tesla booster, sees the meeting as a "first step for Musk to show he is going to lead Tesla through this tumultuous period."

Conclusion

As Tesla navigates a difficult period, Musk’s reassurances may be a welcome respite for employees and investors. With a focus on new models, production line revamps, and a commitment to innovation, the company may yet recover from its recent struggles.

FAQs

Q: What is the current state of Tesla’s stock price?
A: As of Friday, Tesla’s stock price had fallen to $233.06.

Q: What are the main challenges facing Tesla?
A: Slower sales and shipments, vandalism and protests, and controversy surrounding Elon Musk’s role in the Trump administration.

Q: What are Tesla’s plans for new models and production?
A: The company will launch new, more affordable models in the first half of this year, although details are scarce. Production of the best-selling Model Y has been paused to rework the production line and produce a redesigned version.

Q: Is Elon Musk optimistic about the company’s future?
A: Yes, Musk remains optimistic, predicting a bright and exciting future for Tesla, with new innovations on the horizon.