Tesla, Inc. shares are trending upward after CEO Elon Musk urged employees and investors to hold onto their stocks amidst ongoing market volatility.
Background
Musk made the comments during a meeting in Austin, Texas, which was streamed live. He emphasized the importance of perseverance, stating, “If you read the news, it feels like Armageddon… I understand if you don’t want to buy our product, but you don’t have to burn it down.”
Key Takeaways
- Musk asked employees to “hang onto” their stock during the meeting, aiming to bolster confidence in the company.
- The CEO also provided an updated timeline for the humanoid Optimus robot, which could be available for external use as early as the second half of 2026.
- Musk expressed optimism about the company’s future, saying, “There are times when there are rocky moments, a little bit of stormy weather, but I’m here to tell you the future is bright and exciting.”
Market Performance
Tesla stock has experienced a significant decline over the past three months, dropping 43% since the start of the year. The company has faced increasing competition from Chinese electric-vehicle manufacturers, such as Xpeng, which reported a 300% increase in vehicle deliveries year-over-year. Additionally, Tesla has seen a decline in sales, including a 45% decrease in European sales for January.
Potential Factors Contributing to the Decline
Several factors may be contributing to the stock’s decline, including:
- Increasing competition from Chinese electric-vehicle competitors
- Musk’s role in the Trump administration, particularly his position as head of the Department of Government Efficiency
- Recent incidents of vandalism to Tesla property across the United States, which are being investigated by the Federal Bureau of Investigation
Current Stock Price
At the time of writing, Tesla shares are moving 4.09% higher at $246.06.