Tesla Inc.’s CEO Elon Musk’s comments about the company’s future have failed to impress investors following a mixed Q3 earnings report. According to Gary Black, managing director of Future Fund LLC, Musk’s comments were not enough to instill confidence in the company’s investors.
Earnings Call Criticized for Lack of Specifics
Focus on Technical Jargon Rather than Strategic Initiatives
Black took to social media platform X to share his thoughts on the EV giant’s earnings call, stating that it was “long on promise but short on specifics.” He criticized Musk’s use of technical jargon and buzzwords, saying that they did little to instill confidence in investors. Instead, Black believes that the company’s management should have focused on discussing major strategic initiatives, such as early consumer response to new affordable vehicles.
Ross Gerber: Tesla Shouldn’t Shift Focus Away from EVs
Core Business Remains “Wildly Profitable”
Ross Gerber, co-founder of Gerber Kawasaki, agrees that Tesla should not shift its focus away from its core business of electric vehicles (EVs). Gerber believes that EVs are still “wildly profitable” for Tesla and that shifting focus away from this area would be a “strategic error.” He also stated that Tesla makes the best cars in the world and that he still personally owns Tesla stock, with over $80 million worth of Tesla shares held for clients.
Musk Calls ISS Corporate Terrorists, Pay Package Expected to be Approved
Overwhelming Approval Expected from Investors
Meanwhile, Musk has called proxy advisory firms like International Shareholder Services (ISS) and Glass Lewis “corporate terrorists” for opposing his $1 trillion pay package. However, Black expects the pay package to receive overwhelming approval from Tesla’s investors at the shareholder meeting in November, with over 70-75% of investors in favor of the package.
Tesla’s Scores and Trends
Momentum, Quality, and Growth Metrics
Tesla scores well on Momentum, Quality, and Growth metrics, but offers poor Value. The company also offers a favorable price trend in the Short, Medium, and Long term. For more insights and analysis, consider signing up for stock rankings and mobility coverage.