Shares take a nosedive ahead of incoming quarterly reports.
Tesla's Image Crisis Deepens: Shareholders Demand Action Amidst Elon Musk's Political Entanglements
Tesla's Board is under heavy fire from disgruntled shareholders, questioning the steps they're taking to manage the damage to Tesla's image due to Elon Musk's political move-making. As protests, boycotts, and arson attacks target Tesla factories in Europe escalate, shareholders wonder, "What's the board doing to stop this mess?"
Polls indicate that a mere 27% of US buyers would still consider purchasing a Tesla, a dramatic drop from 46% two years ago.
Quarterly Earnings: A Storm Awaits
Tesla's Q2 earnings are shaping up to be a disaster. The reasons:
- Deliveries tanked: 336,681 vehicles (-13% from last year's quarter!)
- Trump's tariffs and nationalism hit Tesla hard in China.
- Analysts expect a revenue of $21.24 billion, which would be a slight decrease from 2023.
- The margin isn't looking good either: Expected 40 cents per share profit would mark a significant drop.
- Dan Ives, a star analyst, warns of "permanent demand destruction" due to Elon Musk's political escapades.
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Robotaxis: Musk's Last Stand?
Tesla CEO Elon Musk mustNAIL tonight's earnings call: Will he prioritize Tesla - or continue strutting as Trump's puppet master? Shareholders plead, "Focus on robotaxis, not politics!" Tesla is reeling from its deepest crisis in years, and this time, it's not the competition that's to blame, but Musk himself.
According to experts, Musk should resign from his Department of Government Efficiency role to shift his focus back to sustainable innovation and rebuild public trust. They emphasize the need for a clean separation between Musk's political aspirations and Tesla's business objectives.
External Recommendations and Demands
- Investor Demands:
- Major pension fund leaders demand that the Tesla board require Elon Musk to work at least 40 hours per week for the company, focusing on addressing declining sales and reputation issues.
- There's a call for a clear succession plan and limits on directors' external board commitments to ensure focus on Tesla's core mission.
- Corporate Governance Reform:
- Some analysts suggest implementing policy firewalls to separate Musk's political advocacy from Tesla's corporate strategy, reducing reputational risks.
- The push for independent directors to insulate Tesla from Musk's personal risks, including those related to his political activities, is gaining steam.
These strategies aim to address the declining stock price, customer skepticism, and brand damage associated with Musk's political entanglements. The Tesla board's specific actions in response to these recommendations remain to be seen.
- The recent polls show that only 27% of US buyers are considering purchasing a Tesla, a significant drop from two years ago, raising concerns among analysts about the impact of Elon Musk's political actions on the company's image and business.
- Dan Ives, a star analyst, has warned of "permanent demand destruction" for Tesla, citing Elon Musk's political escapades as a potential threat to the company's future earnings and investor confidence.
- As the Q2 earnings show a potential disaster for Tesla, with analysts expecting a slight decrease in revenue and a significant drop in profit margin, the focus has shifted towards the company's board to take action and address the concerns of disgruntled shareholders.
- In light of Tesla's crisis, experts are urging Elon Musk to resign from his role in the Department of Government Efficiency to rebuild public trust, prioritize sustainable innovation, and refocus on Tesla's core mission of creating advanced technologies in the field of finance, business, technology, and general news, such as robotaxis.
