Six months ago, Elon Musk said he would stop attending investor conference calls unless there was “something important” that he needed to say. He should have stuck with that plan.
“There was no reason that he needed to double down and shout ‘supply chain’ into a crowded theater,” said Dan Ives, tech analyst at Wedbush Securities. “He gave the bears meat on the bones. That’s why the stock sold off. I’m convinced if Musk was not on the call, the stock probably would have been up on Thursday.”
None of Musk’s comments directly addressed the situation at other EV companies. But all the pure-play EV stocks fell sharply Thursday. Rivian fell 10.5% whileshares tumbled 14.1%, and Chinese EV maker Nio had its US shares fall 6.8%. Ives said Musk’s comments raised concerns that if an EV maker as big as Tesla is facing problems, its smaller upstart rivals could be suffering even worse.market cap — a benchmark it hit late last year.
Even with the sell-off, which continued Friday, Tesla shares are worth more than the market value of the 10 largest automakers in the world, combined. That means Tesla has a valuation that many people think is unsustainable, making it more susceptible to sell-offs like the one Thursday, especially at a time that broader US markets are already in“Investors wanted confidence from Musk,” Ives said. “Instead they got him talking about supply chain and robots.
Musk’s comments on the call were a stark contrast to Apple CEO Tim Cook’s performance on its call Thursday evening.to report, and like just about all manufacturing companies on the planet, is dealing with supply issues. But with Cook assuring investors, Apple shares were higher in Friday morning trading.
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