Tesla CEO Elon Musk has urged his employees to maintain their faith and urged them to “stick to your stock” as the fought-out carmakers are fighting against vandalism at dealers and a record surge in vehicle return.
Musk, who unofficially leads Trump's Department of Government Efficiency (DOGE), tried to calm his nerves during a company-wide all-hand meeting on Thursday night.
Tesla's stock has plummeted more than 50% in the past three months amid signs of a leftist pushback against Musk and a slower sales.
“I understand that you don't want to buy our products, but you don't need to burn it.” Musk said. “That's a bit irrational.”
The world's wealthiest acknowledged that it “feels like Armageddon” for Tesla, based on recent news reports about the waves of arson attacks and dirt.
On Thursday, U.S. Attorney General Pam Bondi charged three people with allegedly destroying a Tesla vehicle and accusing it of “domestic terrorism.”
During the live-streamed meeting, Musk gave a presentation on Tesla's long-term product roadmap, including years of fully autonomous driving software that promised to change the value proposition of the company's vehicle.
“What I'm talking about is sticking to your inventory,” Musk said, applauding the audience.
“There are times when rocky moments are present, but what I'm here is that the future is so bright and exciting, and that no one dreams of doing something.”
Tesla shares rose about 1% in early trading on Friday to around $238.50.
Some Wall Street, including Teslables like Wedbush analyst Dan Ives, have warned that Musk's work with Doge is hurting some consumers and Tesla brands.
According to a new Edmunds report released Thursday, the number of Tesla trades in dealers that reached “the best share ever” in March reached “the best share ever” as Musk led efforts to cut the federal workforce.
“As Tesla brand loyalty and interest are shaking, people with competitive pricing, new technology, or simply less controversy could snatch Tesla owners and first-time EV buyers.” Edmunds analyst Jessica Caldwell told CNBC.
Ives, who called on Musk to refocus Tesla in light of his recent struggle, described the all-hand meeting as a “big step forward” to reassure investors.
“This was a key moment for Musk and Tesla to demonstrate leadership,” Ives wrote in a note to his client. “We praise Musk for 'reading the room' and showing important handholding for our employees and investors at this critical time. ”
