It’s been a disappointing week for Tesla, and some people – including investors – are blaming the company’s public-facing CEO.
Tesla in Trouble?
EV giant Tesla has released sales figures for the first quarter of the year, and the results were underwhelming. Company deliveries have dropped for the first time in nearly four years.
First Time in Four Years
The company delivered just 387,000 vehicles in the first quarter. It was the smallest quarterly figure since 2022, and the first time it has seen a fall in sales in almost four years.
13% Below Market Expectations
The figure came in at 13% lower than market expectations and caused shares in the EV giant to drop by almost 6% in value after the quarterly results were released.
This brings the overall drop in Tesla shares to 30% since the beginning of the year.
Pandemic Problems
The last drop occurred in the first quarter of 2020, although the cause was much clearer then, as the COVID-19 pandemic forced the manufacturer to shut down production.
Is It Musk’s Fault?
But some are now suggesting that the fall in deliveries – and the subsequent plummet in shares – are a direct result of Elon Musk’s “toxic” online behavior.
Tesla Investor Lets Loose
Ross Gerber, a Tesla investor and chief executive of investment management firm Gerber Kawasaki, took to social media after the announcement to blast the Tesla and X CEO.
Accusations Fly
“Basically, Tesla can’t sell its cars due to Elon’s behavior,” Gerber wrote publicly.
“Let’s stop blaming the Houthi rebels or German environmental terrorists. Or a recession that never came. Or interest rates. Only one person responsible for this.”
Plenty of Warnings
Gerber claimed that he had warned other shareholders about Musk’s behavior “for over a year” and that it was “time for shareholders to assess the blame where due.”
“Toxic” and “Damaging” Behaviour
Soon after, he appeared on the Fox Business Channel, where he described Musk’s infamous online behavior as “toxic” and “damaging” to the Tesla brand.
BOD Did Nothing
He also accused the Tesla Board of Directors of doing “nothing to stop the toxic behavior” that Musk had exhibited on public forums in recent years, despite its alleged impact on sales and market performance.
Too Many Controversies
The accusations come after a consistent stream of public controversies, both minor and major, involving Musk – including the uptick of racist and antisemitic rhetoric on X after his acquisition and his vocal support of far-right political stances.
Is It True?
So, how true is Gerber’s claim? The company officially blamed their lackluster numbers on several interfering factors, including shipping delays in the Red Sea, preparing to introduce a new product at the Fremont, California factory, and an arson incident at Tesla’s Berlin plant.
EV Competition On the Rise
Competition in the EV industry has also rapidly increased in the last few years. Chinese company BYD overtook Tesla as the world’s largest EV manufacturer last year, with Xiaomi also making significant gains.
The post Tesla’s Sales Fall Short, CEO’s Online Conduct Under Fire first appeared on Wealthy Living.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
