Are you a fan of the hit show “Mad Men”? Remember the iconic advice from Don Draper – “If you don’t like what’s being said, change the conversation.” Well, Tesla’s CEO Elon Musk seems to be following that motto.
Tesla recently released its latest quarterly results, which painted a bleak picture in terms of numbers. However, the stock market told a different story – one of excitement and anticipation. Elon Musk announced that new models are on the way and that Tesla will thrive as a pioneer in autonomous ridesharing. This news sent Tesla’s stock soaring with a 14% surge in morning trading after the earnings release.
Despite a 9% decline in car sales and a more than 50% drop in operating profit compared to the previous year, Musk delivered an optimistic message: Tesla is not just a car company. He emphasized that cheaper cars are on the horizon and that Tesla should be viewed as a digital platform similar to Uber and Airbnb for an autonomous fleet.
During the earnings call, Musk reiterated that Tesla’s focus is on solving autonomy and building a massive fleet of autonomous vehicles. He even went as far as to say that if someone doesn’t believe in Tesla’s ability to achieve autonomy, they shouldn’t invest in the company.
While Musk’s visionary goals for Tesla are ambitious, some market observers remain skeptical. Despite the excitement surrounding Tesla’s pivot, there are concerns about the timeline and business model for achieving full autonomy. Analysts from Jefferies and UBS raised questions about Tesla’s commitment to its robotaxi and Full Self-Driving technology.
Musk envisions a future where Tesla’s autonomous technology leads to unprecedented asset value appreciation. While this future may be further away than anticipated, Musk remains steadfast in his belief that Tesla will deliver on its promises.
At Extreme Investor Network, we believe that staying ahead in the finance world requires adapting and evolving. Tesla’s shift from a car company to an AI robotics company is a prime example of changing the conversation and redefining success. Follow us for the latest insights and analysis on market trends and disruptive innovations.
