Tesla CEO Elon Musk urged employees to keep the faith and “hang on to your stock” as the embattled automaker contends with vandalism at dealerships and a record surge of vehicle returns.
Musk, who unofficially leads Trump’s Department of Government Efficiency (DOGE), tried to calm nerves during a companywide all-hands meeting on Thursday night.
Tesla shares have plunged more than 50% over the last three months amid a left-wing backlash against Musk and signs of slowing sales.
“I understand if you don’t want to buy our product, but you don’t have to burn it down,” Musk said. “That’s a bit unreasonable.”
The world’s richest person acknowledged that it “feels like Armageddon” for Tesla based on recent news reports regarding a wave of arson attacks and defacement at its dealerships.
On Thursday, US Attorney General Pam Bondi charged three people for allegedly destroying Tesla cars, accusing them of “domestic terrorism.”
During the livestreamed meeting, Musk gave a presentation on Tesla’s long-term product roadmap, including long-promised fully autonomous driving software that he promised would transform the value proposition of the company’s vehicles.
“What I’m saying is, hang on to your stock,” Musk said to applause from the audience.
“There are times when there are rocky moments. But what I’m here to tell you is that the future is incredibly bright and exciting, and we’re going to do things that no one has even dreamed of.”
Tesla shares rose about 1%, to approximately $238.50, in early trading Friday.
Some on Wall Street, including Tesla bulls like Wedbush analyst Dan Ives, have warned that Musk’s work with DOGE has tarnished Tesla’s brand with some consumers.
The number of Tesla trade-ins for other new or used vehicles at dealerships hit its “highest ever share” in March as Musk led efforts to slash the federal workforce, according to a new report from Edmunds published on Thursday.
“As Tesla brand loyalty and interest wavers, those offering competitive pricing, new technology, or simply less controversy could capture defecting Tesla owners and first-time EV buyers,” Edmunds analyst Jessica Caldwell told CNBC.
Ives, who had called on Musk to refocus on Tesla given its recent struggles, described the all-hands meeting as a “big step forward” toward reassuring investors.
“This was a key moment for Musk and Tesla to show leadership and he did,” Ives wrote in a note to clients. “We applaud Musk for ‘reading the room’ and showing important hand holding at this key time for employees and investors.”
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