Despite flagging car sales, Tesla investors remain optimistic due to the company’s progress in autonomous driving and CEO Elon Musk’s ties to President-elect Donald Trump. Tesla’s share price has risen nearly 80% since early November, driven by faith in Musk’s ability to deliver self-driving technology.
Musk’s 13% stake in Tesla is valued at over $250 million, cementing his status as the richest person on the planet. The company’s sales have stalled, with a 6% decline in the US market and 15% drop in Europe. However, analysts believe Musk will use his influence to clear regulatory hurdles for autonomous vehicles.
The release of Tesla’s sales figures for Q4 2024 is expected to show a bigger decline than any carmaker except Stellantis. Investors hope that a new, affordable vehicle will revive sales. A $25,000 Tesla could make electric cars accessible to the middle class, but Musk has displayed little enthusiasm for such a model.
Analysts wonder if Musk has lost interest in cars as he juggles various activities, including SpaceX and his role in the Department of Government Efficiency. The company’s lack of transparency on its affordable vehicle plans has raised concerns about Musk’s commitment to carmaking.
Despite this, many investors believe Tesla will dominate the self-driving taxi business, with the share price heavily influenced by Musk’s reputation. As the market for electric vehicles grows 25% globally, Tesla’s situation appears more concerning due to its declining sales and lack of affordable options.
Tesla is expected to release more information on its new vehicle plans in the coming months, but until then, investors will continue to bet on autonomous driving and Musk’s vision for the company’s future.
Source: https://www.nytimes.com/2024/12/27/business/tesla-sales-stock-elon-musk.html