Wall Street lowered their price targets on the electric vehicle maker. According to analysts, China sales will be affected by the Chinese government allowing COVID-19 to spread after ending its stance on harsh restrictions, and that CEO Musk is distracted by his hostile takeover and micromanagement ofTwitter.
At the time this article was written, the shares of the company were at a two-year low.
The EV maker's brand is being hurt by Musk's antics on the social media platform One of the many stock dumps the CEO has done this year was to sell around $3.5 billion worth of shares last week.
Some investors want the board of directors to replace Musk as CEO in order to protect shareholders.
The value of having no CEO is reflected in the stock price of the company. It's time for a shake up, says a portfolio manager at a company.
It is not known if consumer sentiment has been affected by Musk's involvement in the social media world. We will have to wait for January to see the fourth quarter numbers.
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Gordon Johnson is the CEO and founder of GLJ Research and a bear. China is the largest and most profitable market for the company.
The China Passenger Car Association keeps track of monthly sales and is difficult to find. In the third quarter of the year, the company sold over 180,000 units in China, with a low number due to factory line upgrade. 343,830 units were sold worldwide in the third quarter.
China has a higher rate of EV adoption than the U.S. and Europe, so it makes up a larger portion of the company's sales. Following the Chinese government's reversal of its previous restrictions, investors are worried that sales will fall in the coming months. If that happens, the company will need to rely more on its Western markets.
Gary Black, a managing partner of the Future Fund, asked if the brand of the electric car company was being impacted by all the drama on social media. In August, Black said that the fund's largest position was that ofTesla.
Is it causing people to either cancel their orders or not orderTeslas, or is it just causing the brand to fall out of favor among people who buy EV's? That is one of the concerns that institutional investors are asking me.
Black believes that Musk will eventually have an impact on the brand if he doesn't stop talking about the "woke mind virus." He said he would advise the board to pull Elon aside and say, "Look, you may have these political views, but you're not helping theTesla brand by communicating them."
Black doesn't know what he gets out of insulting his clients on the left.
Musk said he would abide by the results of the poll, which asked if he should step down as CEO. The voters voted in favor of him leaving, prompting Musk to say that the polls were rigged. Musk has not yet said that he is looking for a new CEO.
One of the reasons investors are selling their stock is the uncertainty surrounding Musk's future.
Black wants Musk to buy back some of the stock so that he can demonstrate that the stock is too cheap.
The stock is overvalued due to the fact that Musk has not delivered on his promises.
Musk said that he would have cars that could drive with cameras. He has not done that. He said he was going to have a $25,000 car. He didn't do that. He claimed to be a Silicon innovator. The man is not. He claimed to be the leader in biped robotic. The man is not. The stock went up because of the promises and quantitative easing.
Now that the stock price is coming down, Johnson implied it's possible investors are not just spooked by the current situations withTwitter and in China, but they're realizing thatTesla is an automaker like any other at the end of the day, and its stock should reflect that
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