Tesla CEO Elon Musk sent a letter to employees last night thanking them for their hard work. This is an annual tradition for Musk, who also urged employees to volunteer to deliver last minute cars to customers, stating that every incremental shipment “will make a real difference.”
Musk also tried calming the nerves of his employees over the recent stock market craziness saying, “Don’t be too bothered by stock market craziness,” and assured the team that Tesla will one day be the most valuable company in the world.
Musk addressing the decline of Tesla stock with employees could be a sign that workers are expressing concern about the stock’s performance, as many employees are compensated with stock-based compensation.
Tesla shares have fallen nearly 70% year to date, and Musk attributes the drop to rising rates and actions by the Federal Reserve.
However, some investors, Wall Street analysts, and employees believe that Musk’s focus on Twitter and his significant stock sales to fund his acquisition of Twitter have also contributed to the stock’s poor performance. Since April, when Musk announced his intention to buy Twitter, he has sold a total of $23 billion worth of Tesla stock. He has unloaded a total of $40 billion worth of Tesla stock this year.
In addition, there are growing concerns about demand for Tesla vehicles, which prompted the company to cut prices in the US and China in an effort to increase sales. It is likely that employees on both the sales and factory floors are aware that demand may be waning for the world’s largest EV brand.
Despite the criticism directed at Musk and his absence from Tesla, some on Wall Street remain optimistic about the company’s prospects, at least in terms of fundamentals.
Morgan Stanley analyst Adam Jonas has reaffirmed his “Outperform” rating for Tesla, although he has lowered his price target from $330 to $250 to reflect the recent weakness in the stock.
Jonas cited Tesla’s valuation, cash flow, innovation, and cost controls as reasons for maintaining his rating, stating that, “Tesla may be in position to extend its lead vs. the EV competition.”
Tesla shares are up in early trading today, on track for two consecutive positive days.