Tesla, an electric vehicle (EV) company owned by Elon Musk, a billionaire, saw its stock price decrease by nearly 10 percent over a span of two trading days this week, which resulted in the company losing billions in market valuation. The dramatic decrease followed Tesla’s Q2 2024 delivery numbers, which were reported below expectations, leading to panic concerning the demand within the EV industry. Panic spread across Wall Street when Musk decided to step in and address the pandemonium. He issued the statement, “Tesla is a long-term play. Buckle up for bumps, but the future is electric.” on X (formerly Twitter).
What are Investors Afraid Of?”
Tesla delivered 436,000 cars in Q2 2024, missing the analyst expectations of 445,000. This was the first decline in deliveries over a quarter since 2020, suggesting stronger competition coupled with an economic slowdown. During this period, other competitors like BYD from China are making sales while appreciating interest rates and reducing subsidies in primary markets like the US and Europe are lowering the demand for expensive EVs.
Musk’s recent twitter outbursts, stubborn obsessive focus on AI and Robotaxis, approval of $56 billion payroll package, has disturbed the shareholders – even more! According to Wedbush analyst Dan Ives, “Tesla’s Investors seem confused seeing Musk’s involvement in several distractions at once. What Tesla also needs now is a solid plan rather than just assurances.”
Musk’s Unwavering Belief: “Stay the Course”
Cautious of the immediate impact, his statement is as brash as the man himself. On his favorite social media platform x, he emphasized more on Tesla’s vision, “Computerization of vehicles is the focus of traditional manufacturers who are trying all they can to catch up with the technology that we have. Tesla goes beyond an automotive industry, it is a technological powerhouse. And to those who doubt us right now, you will be laughing at your reflections tomorrow.”
His words signify the roller coaster nature of Tesla. Musk really puts his body through the works, long term shareholders remember Tesla skyrocketed after 2019, while freshers investing in try to cope with Musk’s perception resulting in 40% drop in value this entire year. “Musk always looks at challenges as opportunities, but his leash is growing shorter,” said retail investor, Linda Carter.
Can Tesla recuperate? Either side backed:
The overly optimistic go out on a limb to assert that the panic sell is foolish. Morgan Stanly’s Adam Jonas pointed out Tesla’s full-sided dominance in the automotive industry, specially battery technology and for self serve driving, propelling them to call Tesla, “the Apple of automobiles”. Others, however are outspoken claiming Tesla needs to do a lot more than what they are currently doing in order to keep clear waters. Although it remains very doubtf ul, the matatwist $25000 model 2 is set to be released around the mid 2026s but is pivotal for mass appeal.
The Road Ahead: Musk Faces New Controversies Musk’s primary focus, especially at this time, is how to propel growth for Tesla. After all, their earnings report comes out later this month, and investors are sure to be paying attention. How will he manage to reassure his investors, audience skeptical about his plans, and fend off competitive opposition? As one user from X platform proposed, “Elon, throw us a bone here.” Confirming or denying skepticism? Only time will tell. Until then, the King’s Tesla message is straightforward: Every revolution comes with its own cost. Volatility is the cost of revolution. Regardless, the struggle is real when stability is requires. When revolution comes Tesla has to chose the direction of their NEXT MOVE, or lose their 600 billion gamble.