Elon Musk, Tesla’s CEO and a key figure in the administration, stood nearby.
Many assumed Musk’s proximity to Trump would be a net positive.
Musk has been quietly shifting rightward for years.
Musk appears to have recognized the stakes.
On Thursday, Tesla held asurprise after-hours all-handsthat was livestreamed to the public from its Texas Gigafactory.
It caught employees and investors off guard, and it appeared to be an attempt at damage control.
Musk implored employees not to sell their stock and admitted that he had been “stretched pretty thin.”
Tesla and Musk are used to dire predictions.
Each time, Tesla has defied expectations and emerged stronger.
Tesla is at a tipping point.
They were willing to overlook provocative tweets and missed deadlines in exchange for explosive growth.
Its stock is down 31% year-to-date, despite a recent rebound following Musk’s all-hands meeting.
Tesla and Musk did not respond to requests for comment.
Since then, the stock has fallen as much as 28%.
Even the longtime Tesla bull Dan Ives had a moment of concern.
“Leaders need to lead.”
Chinese manufacturers like BYD are undercutting Tesla on price while outpacing them in innovation.
BYD on Monday said its sales topped $100 billion last year, outpacing Tesla.
Last week it unveiled acharging stationthat it says is faster than Tesla’s.
Others have expressed concerns about Musk’s involvement in politics and its impact on Tesla.
Elsewhere, cracks have started to appear.
(In a statement, Ottmann directed BI to his attorney Jana Moser.
Moser did not respond to a request for comment.)
One California-based worker described the internal corporate environment as “unsettling.”
Three sales workers told BI they’d dealt with disgruntled customers and prank callers in recent weeks.
“They’re exercising their right to peaceful protest,” one salesperson said.
“As long as it doesn’t cross into anything more we’ll let them be.”
Many other owners are choosing to add anti-Elon stickers to their vehicles or ditch them entirely.
“I was actually considering getting another Tesla before the subsidies ended.
But Elon’s behavior was so vile I decided to shop around,” Cavanaugh said.
“Tesla’s sales slump isn’t temporary.
“You underestimate him at your peril,” she said.
The company’s recent market performance hasn’t scared everyone off.
Merz says she advises prospective investors to look beyond short-term volatility.
“For Tesla, in particular, you really need a horizon,” she said.
Even with the recent crash, Tesla stock is up 63% compared with this time last year.
It’s still the most valuable automotive company in the world.
Musk’s status as “first buddy” could still pay off.
Lutnick and Trump’s sales pitches and the surprise Austin all-hands seemed to calm the waters.
The moment, though, is perilous.
Musk’s popularity has fallen in tandem with his status as a target for public vitriol toward the administration.
“It’s become a brand crisis.”
Even Musk seems surprised.
That’s a bit unreasonable,” Musk said during the all-hands.
“If you read the news, it feels like Armageddon.
I can’t walk past the TV without seeing a Tesla on fire,” he said.
“What’s going on?”
Do you work for Tesla or have a tip?
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