Tesla CEO Elon Musk appears to have begun defending his position as chief executive of the electric carmaker amid mounting criticism from investors in the car company. After the Twitter event went live earlier this week, Musk made it clear that he was present at all the important Tesla meetings, and that he was certainly not MIA, as some critics suggested. It’s clear that he’s trying to dispel some of the recent negative perceptions about him and Tesla.
Elon Musk has been accused of not giving Tesla enough time lately, something he expected as CEO of the electric car maker. The accusations against him have intensified in the past few months since he took over as CEO of Twitter, which it acquired a few months ago. Some Tesla investors have even called for Musk to resign and a newcomer to take over as CEO of the electric car company. Facing sharp criticism, the flamboyant billionaire said he had no plans not to join the car company, which has the largest share of the global electric vehicle market.
Also read: Tesla stock has worst year ever; 2023 could be just as bad
Since the stock price hit an all-time high in November 2021, Tesla’s market value has shrunk by about 70% by 2022. The slide marked a sharp reversal for the world’s most valuable auto company. Indeed, deepening global economic uncertainty and increased competition in the global electric vehicle space have been prompting Tesla investors to worry that the car company may need to sacrifice much of its profit margins to continue growing. From a trend perspective, Tesla’s share price has fallen more than the broader market and many of its competitors.
Many have blamed Musk’s antics for a big reason for the automaker’s sharp drop this year. Interestingly, Tesla stock is heading for its worst year ever as Elon Musk pays more attention to Twitter. Demand for Tesla’s electric vehicles has also weakened amid growing global competition. Another move by Musk that drew criticism from Tesla investors was selling his stock in the company. In 2022 alone, Musk has sold off most of his stake in the electric car company. However, the Tesla CEO announced that he has no plans to sell more Tesla shares for another 18-24 months, or until around 2025, after the last stock dump.
Talking about the plunge in Tesla’s stock price, Musk tried to dispel the fear surrounding it by saying the electric car company can handle any economic situation, even a very negative one. “I think Tesla will weather the coming economic storm better than any company, unless the company is making bread. If you are a ship in the storm, even if you have a great ship, you will still Got hit. There’s a delay in the supply chain,” he said.
Musk also spoke about where the automaker might build its next Gigafactory, further strengthening its grip on the global electric vehicle market. The car company is deploying funds as quickly as possible without wasting money, he said. “We’re investing, can’t say much, but we’re about to site the next gigafactory. We’re very careful and thoughtful about it. We’re coming into the recession strong,” he said.
First published date: December 25, 2022 at 16:59 PM CST
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