YouTuber and Tesla Inc TSLA enthusiast Dillon Loomis believes the EV giant needs CEO Elon Musk to drive its market value and future vision of making the auto world fully electric.
What Happened: In a post on X on Tuesday, Loomis said he is “sick” of people commenting on how Musk is bad for Tesla and the company needs a more stable CEO. Loomis, for one, is convinced otherwise.
“Tesla would not be anywhere close to where it is today if it had some risk-averse leader calling the shots the past decade,” Loomis said, adding that those wanting more traditional CEOs should invest in ETFs or bond funds to avoid the risks involved with Tesla.
It was not immediately clear if Loomis was a Tesla investor.
“$TSLA has always been a high beta, risk-on stock with the mission of transitioning the world to sustainable energy. Doing so requires a bit of ‘crazy’,” Loomis said. The YouTuber thinks that the criticism faced by the CEO is “out of control” and obstructs the “bigger picture” of Tesla potentially becoming a multi-trillion dollar company selling robotaxis and robots profitably.
“Tesla’s market cap ceiling with a vanilla, play-it-safe, don’t rock the boat CEO would be significantly lower than what it is with Elon steering the ship,” Loomis wrote. “Even if the direction at times in the short-term doesn’t make sense with the limited information we have.”
Why It Matters: Many of Musk’s decisions for Tesla and his other companies have faced significant flak. Most recently, his decision to focus all of Tesla’s resources on vehicle autonomy and robotaxis has left analysts and investors divided.
Some investors have also disagreed with the company’s price-cutting strategy to retain demand instead of relying on advertising to boost sales. Price cuts, they say, have been eroding margins.
Late last year, Musk courted controversy for endorsing an antisemitic conspiracy theory, drawing swift responses from advertisers on X, Tesla investors, and Tesla drivers alike. While Musk later apologized for the post, it left a few Tesla owners uncomfortable and pushed them away from the brand.
Showdown For Musk: Tesla shareholders in a meeting on June 13, 2024, will again vote on Musk’s rescinded pay package, which will play a key factor in determining the company’s long-term strategy.
Price Action: Tesla stock closed 3.3% higher on Tuesday at $177.55, giving the company a market cap of $566.24 billion. The stock is down 28.5% year-to-date, according to data from Benzinga Pro.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Read More: Tesla CEO Elon Musk Says Making New Roadster Only As Fast As Model S Plaid Would Be ‘Ridiculous’
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