The Tesla Saga Continues, Pt 2
I have been trying to stay clear of being too negative on Tesla, however, we have such a negative wave again, that I simply have to. So what has happened? Well three things actually. First, and although from yesterday, it combines with other news, but Elon is being accused of selling $7.5 billion in Tesla shares right before releasing disappointing sales data. What the article forgets to mention in the first part is that this coincided perfectly with the Twitter acquisition and the troubles that were rumored about the loans for it. But it doesn’t get a good look to have another accusation. The $7.5 billion in stock sales should have happend at the end of 2022.
Second, Tesla has once again posted lower May deliveries in China when compared to a year ago. This doesn’t really look too good if we think about the fact that Elon promised growth for the year. I’m not saying it can’t happen, but it keeps becoming more and more difficult. Sales are so far down 7.1% compared to the first five months of 2023. The article also added that Tesla insurance registrations in China are down 4% for the first 9 weeks of Q2 when we compare it, again, to last year.
Third, and this is extremely bad in my opinion if it’s true, but Elon Musk reportedly ordered Nvidia to ship thousands of AI chips to X, and Xai, that were originally destined for Tesla. The article comes from CNBC. The article claims that the order we are talking about is for 12.000 H100 chips, Tesla shares fell less than 1% in pre-market as this news came out. My opinion is very clear about it, and that is that if true, this strongly signals Musk prioritizing his start-ups over Tesla
So what is my problem with Tesla and Elon Musk? Well that is quite simple actually.
Elon Musk seems to be the worst enemy of the company when we talk about the publicity. In my opinion it’s time for Elon to move on to his next challenges, like putting people on Mars, or challenging OpenAI. He has so much going on and has put Tesla in such a good spot for the future, that it’s time for someone new to stabilize, and consolidate the business to continue it’s growth with new products as a car manufacturer.
Musk’s latest move with the X and Xai preference on the chips is the latest proof for me. He clearly wants Tesla to work, but it is causing him so much drama and frustration that his moves indicate that he simply wants to be done with the company, and in my opinion, he should let it go.
