The stock of Tesla Inc. TSLA experienced a significant drop in after-hours trading following a bold statement by CEO Elon Musk regarding vehicle autonomy. The stock’s plunge came despite the company’s second-quarter financial results, which were described as “impressive” by Jim Cramer.
What Happened: Gene Munster, a tech analyst at Deepwater Asset Management highlighted Musk’s statement during the second-quarter financial results call on X.
“I recommend anyone who doesn’t believe that Tesla will solve vehicle autonomy should not hold Tesla stock. They should sell their Tesla stock. If you believe Tesla would solve autonomy should buy Tesla stock. And all these other questions are noise,” Musk said.
Musk also responded to Munster’s post on X, commenting, “Yup.”
Despite the stock’s decline, Cramer expressed his admiration for the conference call, particularly Musk’s insights on autonomy, humanoids, and batteries, in a post.
Cramer said, “I know that Tesla’s stock is down in after hours but, holy cow, what a terrific conference call: tutorial on autonomy, humanoids, batteries…really impressive…”
Why It Matters: The drop in Tesla’s stock comes on the heels of the company’s second-quarter financial results, which were a mixed bag. While the company’s revenue of $25.5 billion beat the Street’s consensus estimate, the EPS, operating margins, and free cash flow fell short, leading to a post-market session decline in Tesla’s stock.
Musk also discussed various aspects of the company’s operations during the call, including a robotaxi delay and the company’s energy business.
Moreover, Musk has been in the news for other reasons as well. He recently initiated a poll on X (formerly Twitter) to gauge whether Tesla should invest $5 billion in his AI company and Grok-parent, xAI.
Additionally, Musk refuted claims of donating $45 million monthly to former President Donald Trump‘s campaign in an interview with psychologist and conservative commentator Dr. Jordan Peterson.
Price Action: Tesla's stock closed at $246.38 on Tuesday, down 2.04% for the day. In after-hours trading, the stock fell further 7.77%. Year to date, the stock has decreased by 0.82%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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