Tesla Shares Tumble After Elon Musk’s Behavior

Tesla Inc. can be a game changer in a business environment where there is greater emphasis on providing a cleaner and eco-friendly future. But, after the way the Chief Executive of the company, Elon Musk behaved during his lengthy conference call on Wednesday hurling insults to media-men, analysts, victims of his Autopilot crash and federal regulators, there are greater chances of it turning to be an uncontrollable rolling disaster.

The problem lays in the fact that in spite of Tesla being a big public company, Musk is answerable to almost no one for his insulting behavior. The Board of Directors of his company is filled with people who will not voice any form of opposition and that includes his brother too who is a member. Musk’s large sized ego and uncertain behavior can drive the company to a brink of collapse.

During the conference call, Tesla revealed a net loss of about $785 million for the quarter ending March 2018, the highest so far in its history. The figures were still lower than market estimates, a chance that was not missed by Musk to tout a victory call on Twitter. Musk’s casual approach, vitriolic behavior, bumbling with figures was very apparent during the question and answer session that followed and this led to a downfall in his company’s share price which had actually rallied after the disclosure of the numbers. If the downfall in share price continues into the trading session on Thursday then that would go towards adding to a 3.3% decline of Tesla for this year.

Musk was very vocal on the issue of Autopilot and the deaths caused due to it and put the entire blame on the media for giving wrong information to the public leading federal regulators to take necessary actions. He also blamed the complacency of his customers when their Autopilot is put on. This coupled with their overconfidence is the reason for the occurrence of deaths, he felt.

Fielding questions about his stocks volatility, Musk retaliated that people who were scared should avoid buying his stock.

So much so for a CEO who has a large company with so many employees yet behaves in such an outlandish fashion!

Arpit Mehta

Arpit is a well ripened fruit in the field of finance and markets. When it comes to numbers, nobody can catch this guy’s hand. Needless to say that he does not require a calculator, he himself is the calculator for the Market Global News’ team. In his free time, you will find him grabbing a cup of coffee with his friends.

Related Articles