Tesla’s stock performance might be attracting a heavy dose of criticism when compared to its Magnificent Seven peers. However, CEO Elon Musk reaffirmed his commitment to the electric vehicle (EV) maker. That could put it back in good graces with market bulls.
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Musk appeared to respond to critics at a recent Qatar Economic Forum, according to reports. The mercurial CEO has taken his fair share of blows for his involvement with the U.S. government’s Department of Government Efficiency (DOGE) along with his other business ventures. Shareholders of Telsa questioned whether Musk is allocating enough bandwidth to the EV maker. To those critics, Musk pointed out that the revenue speaks for itself.
“Sales numbers are strong, we see no problem with demand,” Musk said in response to falling sales numbers. He noted that the stock price has the ultimate say in performance.
“You can just look at the stock price if you want the best inside information,” Musk added. “The stock market analysts have that, and a stock wouldn’t be trading near all-time highs if it was not, if things weren’t in good shape. They’re fine, don’t worry about it.”
Still CEO 5 Years Later?
The Financial Times reported that Tesla created a special committee to address a new pay package for Musk. Even if Musk’s operational role is diminished and delegated to others, his popularity still makes him an essential figurehead to the company’s image. That said, will an impending battle with shareholders regarding his pay keep him in the CEO role for the next five years?
As mentioned in the FT report, large shareholders were questioning Musk’s exorbitant pay demands, which totaled $56 billion. The company’s current valuation is just north of over $1 trillion. Musk’s proposed pay would account for roughly 5% of that.
A common theme among the majority of the Magnificent Seven is a focus on artificial intelligence (AI). While it might not seem like a carmaker would be included among the Microsofts and Googles of the world as leading the charge in AI, Tesla is implementing a number of AI projects. Importantly, this signals to investors Tesla’s focus on the requisite burgeoning tech.
All that said, the FT report noted that Musk threatened to take away AI projects from Tesla if he didn’t receive additional stock options.
“It’s not a money thing, it’s a reasonable control thing,” Musk said. “I can’t be sitting there and wondering if I’m going to be tossed out."
Nonetheless, to appease bullish investors concerned about his involvement with the company, Musk mentioned that he intends to still be Tesla’s CEO five years from now. However, that affirmation didn’t come with guarantees.
“Well, no, I might die,” Musk said.
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