Elon Musk, the CEO of Tesla Inc., has made shocking accusations against protesters at Tesla showrooms. According to Musk, these protesters are funded by government waste and fraud. This statement was made during Tesla’s first quarter earnings call, where the company reported a miss on both revenue and EPS estimates.
The Accusations
Musk claimed that the protesters are benefiting from government programs that have faced cuts, and this is the real motive behind the protests. He stated that the protesters are not going to admit that they are receiving fraudulent money or wasteful largesse. Musk believes that the actual reason for the protests is that those receiving the waste and fraud wish to continue receiving it.
The Protests
The protests, dubbed the “Tesla Takedown,” have called on Tesla shareholders to sell their shares and urged vehicle owners to stop using their cars. The organizers of the movement have emphasized that it is peaceful and does not support any form of violence or property damage. However, there have been instances of vandalism and arson targeting Tesla properties.
Incidents of Vandalism and Arson
Last month, a 36-year-old man from Nevada was arrested and faced 15 felony charges for vandalizing a Tesla collision center in Las Vegas and setting fire to five vehicles. Additionally, three other individuals in Colorado, South Carolina, and Oregon were charged for carrying out similar attacks on Tesla vehicles and charging stations.
Political Allegations
In an earlier interview, Musk accused certain groups of being responsible for the protests, describing their actions as “deranged.” This development comes on the heels of Tesla’s Q1 earnings call, where the company cited tariff pressures and changing political sentiment as factors clouding its guidance.
Impact on Tesla
Following the earnings call, Musk announced his decision to reduce his involvement with certain government initiatives, limiting his government work to “a day or two per week.” This move was praised by analysts, who called it a positive sign for the company. However, investors are growing doubtful of CEO Elon Musk’s bold forecasts after Tesla’s profits dropped 71% in Q1.
Market Reaction
Tesla stock climbed 4.60% to close at $237.97 on Tuesday. During after-hours trading, the stock rose 5.39%. The company’s performance has been a subject of concern for investors, and the recent developments have added to the uncertainty surrounding the company’s future.
Conclusion
The accusations made by Elon Musk against Tesla protesters have added a new dimension to the ongoing debate surrounding the company. As the company navigates through these challenging times, it remains to be seen how the situation will unfold and what impact it will have on the company’s future.