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What happened
Electric car pivot actions You’re here (NASDAQ: TSLA) hit the road a bit today, falling 1.9% through 12:12 p.m. EDT after marking seven straight days of equity price improvement previously.
I see several reasons why this could be happening.
Image source: Getty Images.
So what
First, there was Tesla’s glaring absence from President Biden’s EV summit on Thursday. Representatives of Ford (NYSE: F), General Motors (NYSE: GM), and Stellantis (NYSE: STLA) were all invited and present – but Tesla was not.
Was the President just confused by Stellantis’ ticker symbol (which is almost identical to Tesla’s) and thought he invited Tesla when he didn’t? Perhaps. But CNN found a potentially even more troubling explanation:
Noting that representatives from the United Auto Workers union were also present at the ceremony (and that Tesla operates a non-union store), White House press secretary Jen Psaki joked that Ford, GM and Stellantis “are the three largest employers in the United States. Auto workers, so I’ll leave it to you to draw your own conclusions “on why Tesla was not invited.
Whatever the reason, Tesla was resolutely not at the White House to hear President Biden proclaim his intention to have electric cars account for half of all new vehicle sales by 2030.
Now what
This dissipation quickly prompted Elon Musk to tweet the following:
Will the White House exclude Tesla, the most manufactured electric vehicle in the United States, from its EV event? https://t.co/loRazecbsp
– CleanTechnica (@cleantechnica) August 5, 2021
And that leads to our second potential reason why Tesla investors are unhappy today. As TheFly.com reported yesterday, investment bank Bernstein recently reflected publicly on the possibility of Elon Musk preparing to step down as CEO.
Musk said on Tesla’s latest post-benefit conference call that he would not appear in the future. And building on that observation, Bernstein reminded investors of the CEO’s repeated complaints about Tesla’s demands to become CEO and his multiple commitments to companies. other than Tesla (SpaceX, The Boring Company, etc.), ultimately concluding that there is a real possibility that at some point in the future, Musk could leave the company and take his Elon magic with him.
And if that makes Tesla investors a little nervous today, I think that’s understandable.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.
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