Photo: USA Today
Elon Musk, the visionary behind Tesla and SpaceX, said six months previously that he would cease to attend conference calls with investors unless “something important” could be conveyed. However, the business magnate got on a call Wednesday to discuss the fourth quarter’s record earnings and revenue, following his absence from the third quarter’s call. Although Tesla is in a soaring financial position, investors were bugged about his statements on the conference call this week.
Tesla’s stocks had reached their worst time in months on Thursday, dropping to 11.6% and dragging the other EV shares down with it.
In his statements, Musk centered on supply chain issues that had hurt Tesla considerably less than other auto manufacturers. Even though Musk stated that Tesla was on track to be “comfortably above 50% growth in 2022,” and that the scarcity of chips is “better than last year,” he heeded the supply chain challenge is “still an issue that could slow the rollout of new vehicles that had been expected as soon as this year.”
He announced that the company’s first pickup truck, Cybertruck, has to be delayed until 2023. Alongside this new vehicle are plans for another Roadster as well as a semi-truck. He added that he looks forward to Tesla being “ready to bring those to production hopefully next year. That is most likely.”
But those statements weren’t what the investors wanted to hear. The EV competition is getting tighter as the days pass. Rivian, a young truck manufacturer with an electric vehicle in development, has been making waves recently. The company was named Motor Trend Truck of the Year.
Ford is going further this spring and beginning to build its F-150 Lightning EV and aims to make 80,000 trucks a year to meet increasing demands. This week General Motors revealed that it would begin developing an electric variation of its Silverado and Sierra pickups in 2024.
Wall Street analysts were not impressed by Musk’s statements on the call.
Wedbush Securities tech analyst Dan Ives said, “There was no reason that he needed to double down and shout ‘supply chain’ into a crowded theater.”
“He gave the bears meat on the bones. That’s why the stock sold off. I’m convinced if Musk was not on the call, the stock probably would have been up on Thursday,” he added.
Not one statement from Musk dealt with the issue at hand – the affairs occurring among other EV manufacturers.
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