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March 5, 2024
Business

Tesla stock faces setback after Elon Musk’s contentious conference call

After releasing its Q3 financial results, Tesla’s stock took a significant hit, plummeting by nearly 10%. While the Q3 results did not meet market expectations, the stock remained stable initially, possibly buoyed by the much-anticipated Cybertruck delivery event announcement. However, the subsequent conference call with CEO Elon Musk led to a more negative market response.

Tesla stock faces setback after Elon Musk's contentious conference call

Several factors during the call might have contributed to the stock’s decline. Key among them was Musk’s cautious stance on the Cybertruck and a potential slowdown concerning the Gigafactory in Mexico. The overall tone and handling of the conference call could also have played a role in the stock’s downward trajectory.

One glaring issue during the call was Musk being muted during his opening statement, which was only realized halfway. Even after being unmuted, Musk continued without revisiting the missed portion. This oversight raised concerns about the CEO’s surrounding team’s efficiency. Additionally, Musk appeared to evade certain critical questions.

When posed a question about Tesla’s legal responsibility for Full Self Driving (FSD), Musk diverted to unrelated topics rather than addressing the issue directly. Musk’s extensive focus on macroeconomics and interest rates during the call also raised eyebrows. While these external factors undeniably influence Tesla’s operations, Musk’s emphasis on them seemed excessive, especially when he sidestepped other pertinent internal company issues.

Furthermore, despite the external financial environment, Tesla’s price reductions over the past year seem to exceed what’s necessary to maintain consistent monthly payments in light of rising interest rates.

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