Zinger Key Points
- Demand slowdown and competition have hurt Tesla's sales and, in turn, its fundamentals.
- Tesla's flailing fundamentals and the management's strategic decisions have earned it the displeasure of even bulls.
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Tesla, Inc. TSLA is currently going through harrowing times, dealing with an inclement economic environment and rising competition. Amid these trying times, CEO Elon Musk on Saturday lamented about “naysayers” who wished that the company go down.
What Happened: A Tesla investor shared his grievance regarding so much hate toward the electric vehicle maker. “The number of people that wish $TSLA (a US company) to go bankrupt and would rather see BYD (a Chinese company) thrive and win is concerning, absurded, and backwards,” the investor said on X, formerly Twiter.
He also noted that China wants Tesla to succeed, referring to the company’s success in China despite strong domestic competition and the country’s recent favorable stance towards the rollout of Tesla’s full self-driving technology.
Reacting to the comment, Musk said, “The Tesla naysayers are loud, but are rare outside of hedge fund short sellers and far left activists. And, of course, our amazing President.”
See Also: Everything You Need To Know About Tesla Stock
Why It’s Important: Musk and Biden have not shared a cordial relationship, with the president repeatedly snubbing the latter at electric vehicle summits organized by the White House. Biden, while applauding General Motors and Ford, has never openly acknowledged Tesla's role in spearheading the EV revolution in the U.S.
That said, the Biden administration recently announced 100% tariffs on Chinese EV imports even as companies from the Asian nation have been striving to get around the import curbs by setting up shop in Mexico.
The billionaire, on his part, has been very vocal in criticizing the president for his lack of mental acuity. In a separate post on Sunday, he took a swipe at the president for reading off a teleprompter. When one of his followers shared a video clip of the president’s speech, Musk said, “Whoever controls the teleprompter is the real president.”
Tesla’s flailing fundamentals and the management’s strategic decisions have earned it the displeasure of even bulls such as Future Fund’s Gary Black. The company has a great test coming up as shareholders are due to vote on reapproving Musk’s 2018 compensation plan, which legal experts believe may have to pass unanimously, given it is pay for past work.
Tesla ended Friday’s session up 1.50% at $177.46, according to Benzinga Pro data.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
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