Elon Musk Warned Of A Possible Sharp Drop In Tesla Shares

2023 Author: Natalie MacDonald | [email protected]. Last modified: 2023-05-21 02:36

The head of the company, in an internal appeal to Tesl employees, asked them to focus on profit, reports Electrek. Otherwise, according to Musk, the company's shares will collapse, "like a soufflé under a sledgehammer." Over the current year, the company has risen in price sixfold and is now worth more than any other automaker.

• In his address, which is published by the publication, Elon Musk notes that, despite the fantastic growth of Tesl shares over the past year, the company's actual profit remains very modest - at 1%. The rise in the price of the company is associated with positive expectations of investors. However, if Tesl fails to meet these expectations, the share price risks plummeting.

• Therefore, Musk asks his employees to think about the company's profits and try to save as much as possible: "50 cents here, 20 cents there, and saving $ 5 is generally a great idea." Saving money will help, among other things, to design the "people's electric car", announced by Musk some time ago. It is expected to cost $ 25,000. The plans of the company also include some compact novelty specially for the European market.
• The publication assumes that the growth of Tesl shares is connected both with this announcement and with the intention of the company to set another production record. By the end of 2020, Tesl expects to transfer more than half a million vehicles to customers. Against this backdrop, investors expect the company to continue its rapid growth and in the future will become noticeably more profitable than it is now.
• According to Axios, the price of one Tesl share has grown from $ 90 to $ 574 over the year, and it is possible that it will continue to grow. For this reason, the company is now valued at at least $ 500 billion, which is more expensive than Toyota, GM, Ford, Volkswagen and FC taken together. The condition of Musk himself thus automatically rose to second place in the world. In terms of his own wealth, the head of Tesl is now second only to the head of Amazon, Jeff Bezos.