Elon Musk employed an aggressive strategy—including the threat of a “thermonuclear” lawsuit— to contain the fallout after his endorsement of anti-Semitic rhetoric on X that prompted an advertising backlash at the billionaire’s social media company and some on Wall Street to call for his censure.
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https://www.barrons.com/articles/tesla-stock-price-annual-meeting-elon-musk-772aea70
It feels as if every day brings new price changes from
Tesla
Investors are getting used to them. The bigger deal now is the electric-vehicle company’s first-quarter gross profit margins are due to be reported in just a few days.
Reuters reported Friday that Tesla cut prices for its electric vehicles in Europe and some other countries. The price of a Model 3 and Y in Germany were reduced about 5% and 10%, respectively.
There is little time off for investors following
Tesla
these days. The weekend before Christmas is no exception. In the past couple of days, there have been more tweets about
Tesla
‘s management. Investors have also learned where
Tesla
might put its next manufacturing plant. And Elon Musk has a finance lesson for investors.
“Securities Analysis 101,” tweeted out the Tesla (ticker: TSLA) CEO on Saturday. “As the ‘risk-free’ real rate of return from Treasury Bills approaches the much riskier rate of return from stocks, the value of stocks drop. For example, if T-bills and stocks both had a 10% rate of return, everyone would just buy the former.”
Elon Musk says that
Tesla
could someday be worth more than
Apple
and Saudi Aramco, combined. First, it needs to get through the next few months.
Before Tesla (ticker: TSLA) reported third-quarter earnings this past week, investors had been hoping they would allay concerns that had been growing since the company released second-quarter numbers three months earlier. They did no such thing. While earnings topped expectations, third-quarter deliveries, sales, and profit margins all fell short of Street projections. Tesla shares slumped 6.7% following the release, putting them down 22% since the end of September, their second-worst start to a quarter since the first few weeks of 2016.