Canadian billionaire Elon Musk has let it be known that it is not his intention to sell Tesla stock for at least the next three years as he believes the share price will soon rebound.
As the leading EV company comes to terms with shareholder and investor discontent over the stock’s performance on Wall Street, Musk begins a wide-ranging maneuver to get Tesla’s stock back on track.
Following statements made about his position in Twitter last week that were followed by his resignation as the company’s CEO, Musk immediately went to work to counter the parent company’s free fall on the stock market.
Tesla, which at the time of writing is trading at 121 euros per share, is at its lowest level since 2020 and the race to the bottom shows no sign of stopping.
On Twitter, the ever-present Watcher.Guru reports the sensational words of the CEO of Tesla Motors who basically explained how his intention is not to sell any stock in the electric company between now and 2025.
The news quickly broke into the hearts of investors who saw in these words a reassuring three-year vision that places Tesla as a safe haven asset but when this recovery will begin is currently not known, not to investors anyway.
However, Musk has very clear ideas and meanwhile collects a new record in Europe for car sales.
Elon Musk: optimism about Tesla stock
Indeed, in Norway, a Scandinavian country that is always very sensitive to fashion and the environment, the Model Y really seems to have accomplished a masterpiece and entered the hearts of the population.
In fact, sales of the Model Y, Elon Musk‘s own little gem, have skyrocketed in recent months.
This huge success in the wake of the Green and Green Party movements in particular have led to the Texas car reaching and surpassing the sales record in the country.
The title of best-selling car ever in Norway to date belonged to the German Beetle of the 1960s/70s and was achieved in 1969 to be precise.
The Model Y this year has swept away the resilient sales record of the cute German car and is an early sign that plays into Musk’s policy.
Meanwhile, in a macabre nostalgia operation reminiscent of the layoffs that occurred this year, the company’s CEO communicated by email to its employees the corporate reorganization plan for the next quarter.
The contents of the email were an acknowledgement of the macroeconomic situation in which we live and the difficulty in finding raw materials, especially the materials needed for chip manufacturing that will unfortunately lead to a new policy of restriction within the company.
Tesla will implement a new workforce contraction plan in the next quarter, implementing another massive wave of layoffs.
Meanwhile, Musk has also halted hiring until the end of 2022 and through the first quarter of 2023 by letting it be known that he will revisit the plan next spring.
In short, the company needs confidence and Musk to take back the gold mine that has led him to compete for the title of richest man in the world for which he recently set up a virtual race with Frenchman Arnaud.
Corporate austerity and a new injection of confidence are the first moves to pull the stock out of the swamp on the market, and while waiting for the next ones, investors are hoping that the stock will stop its fall in New York perhaps buoyed by a recovery in the Nasdaq and Standard & Poor 500.
The feat seems to be epic but the naturalized Canadian entrepreneur has accustomed us over time to impossible challenges and analysts hope this is not the time he will fail.
Meanwhile in the stock market the stock has dropped more than 65% of its market value this year.
Losses on Wall Street in the last week alone were 20% a sign that something had to be urgently done to salvage what could be saved.
The email from Tesla’s CEO goes precisely in this direction and, like other Tech companies and beyond, goes in the direction of streamlining personnel and optimizing the production cycle.
Even the gigafactories are subject to the study of engineers in the meantime, who are studying how they can optimize the production process.
The “streamlining” effort also includes interventions on materials research to find ever new “ways” that lead to lower costs and greater efficiency.
The vision for 2023
The process will bring great savings to the company over time, and the first effects should already be evident in the first quarterly report due at the end of March 2023.
Musk, who has been working on several fronts, is confident that he can succeed in boosting the company now that he will also be freer from commitments and can take back the helm of the historic American company.
Confirming a better vision for the future of the electric automotive are the long-term forecasts for the stock that come in to lend support just when it is needed and outline a scenario in which Tesla in 2023 should recover some of the lost ground and lead the company out of the swamp.
In the meantime, replenishing the company’s coffers is the Trucks division, which has finally put into production the first product of the wheeled trade division.
The vehicle, which like the company’s others is powered by electric motors, despite its weight promises more durable performance than the company’s regular fleet cars and even more towing power.
The platform will serve as the basis for Tesla’s future next-generation SUVs, and the charging compartment will gradually be upgraded also on the Texas automaker’s traditional family cars. The Canadian billionaire has made it known that it is not his intention to sell shares