With a year-to-date gain of just over 60%, Tesla stock keeps rolling higher, and the company’s recent shareholder meeting could continue to appease the bulls — if the electric automaker manages to hit its goals.
(TSLA) founder and CEO Elon Musk affirmed investors that he could allocate more energy to the automotive industry following his $44 billion buyout of social media service Twitter. In a CNBC report, Musk deemed the buyout a “short-term distraction” which apparently addressed concerns of some critical shareholders.
“Since the electric vehicle maker’s last annual meeting in August 2022, Tesla’s largest retail shareholder, Leo Koguan, has criticized Musk for selling billions of dollars worth of his Tesla holdings to finance a $44 billion buyout of Twitter,” the aforementioned CNBC report noted.
Additionally, the release of the highly anticipated Cybertruck this year should invoke some shareholder excitement. Per Musk’s comments in the shareholder meeting, Tesla should be able to make 250,000 to 500,000 deliveries of the Cybertruck per year once production kicks off.
Of course, in the economic backdrop is the threat of a potential recession. Musk did confirm that the company is well-positioned in the long run should any economic road blocks come up.
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Positive sentiment is permeating to various market analysts. One analyst, in particular, likes the idea of Musk spending less time at Twitter so he can focus more of his energy on Tesla.
“Many investors look at Twitter’s success as important for Tesla shares as it means Musk is less likely to need to sell down more of his Tesla stake to fund operations at Twitter,” said RBC Capital Markets analyst Tom Narayan.
Furthermore, Tesla’s recent price cuts could have a net positive effect on its bottom line. Mainly, offering a price-competitive alternative to other models within its range.
“Tesla’s price cuts have taken prices effectively down where they are competitive with ICE models,” he said.
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