Elon Musk said Tuesday that it has been committed to Tesla, a major vehicle manufacturer, for at least the next five years. He made comments in an interview at the Qatar Economic Forum in Abu Dhabi.
“Yes, it’s absolutely certain about that,” Musk said in an interview at Bloomberg’s Qatar Economic Forum in Abu Dhabi, CNBC reported.
The timing will never be lost to anyone. Tesla’s struggles, reduced profits, sales and brand reputation are under pressure. Still, Musk claims he is doubled. Whether it is sufficient to stabilize the ship remains to be seen.
Musk refocuses after political detours
Musk said he has pulled back from his role in the Department of Government Efficiency (DOGE), a Trump-era initiative that is a lightning bolt of criticism, and has refocused Tesla since May. This comes after a rough quarter. Net profit fell 71%, while revenue fell 9% year-on-year, according to Yahoo Finance.
Distractions from politics did not help Tesla. Critics pointed to Musk’s political activities as the main reason for the company’s poor performance. Within Tesla, the board is supporting him. Chair Robin Denholm pushed back violently with a Wall Street Journal report suggesting the board is looking for a new CEO. “Tesla’s CEO is Elon Musk,” she says, calling the report “absolutely false.”
Musk didn’t even hold back. In X, he accused the report of “a very bad violation of ethics.”
Analysts Back Musk – For Now
Analysts seem to agree that at the helm of the masks is still Tesla’s best option. @divestech posted to X: “I believe Musk clearly did the right thing, and Musk will remain CEO at Tesla for at least five years,” calling the board’s defense a “warning shot.”
Wedbush analyst Dan Ives also throws his weight behind Musk, calling the announcement the best news Tesla investors can expect. His view: Musk has made his message loud and clear and recommended it to the company.
Tesla problems didn’t start overnight
Tesla had a tough year. Vehicle delivery has declined by 13% compared to last year, the biggest DIP in recent memory. Stocks have fallen by more than 30% since January, wiping billions of dollars out of Musk’s own net worth.
Most of the hits? Musk’s political persona. His collaboration with far-right figures and the role of Doge have led to boycotts, protests and even vandalism at Tesla facilities in the US and Europe. CNN reported that sales began to slip in early 2024 after MUSK used X to promote controversial numbers and opinions. From there it turned into a snowball. The Business Insider report cited retail investors saying “people will never forget.”
European protesters have burned the musk into effect. Teslas stickers began to appear with phrases such as “I bought this before I knew Elon was crazy.”
Radiation fallout is more than just political. Tesla has lost to its competitors, especially in China, where demand for EVs is rising, but it’s not Tesla. Sales fell by more than 8% from the previous year. Meanwhile, Jeff Bezos-backed EV startup slates are positioning themselves as a cheaper and controversial alternative with a new line of electric trucks. Cybertruck, which has been exaggerated for years, has not lived up to expectations. More than 10,000 people reportedly are not selling into US stock.
Big bet on Robotaxis and Robots
Still, masks are moving forward with big ideas. During the revenue call, he said Tesla is worth more than the top five tech companies that have one day over $10 trillion in total.
how? He has big bets on AI, autonomous driving and robotics.
Next big release: Cybercab, the roboticonics that Musk claims to be in the second half of 2025. He also spoke about Optimus, Tesla’s humanoid robot. Musk expects “millions of Teslas will operate autonomously” through software updates later this year.
But many people are skeptical.
Motley Fool noted that automobile revenues are shrinking by about 20% each year, and that Tesla’s robotics efforts have not yet produced fully functional products. Previous demonstrations of Optimus were either pre-recorded or controlled by humans. Don’t forget. Musk claimed there would be 1 million Robotaxis by 2020.
That didn’t happen.
Returns the package to the table
Mask’s new focus on Tesla is also because the board weighs on the new pay package. Reuters reported on May 14 that Tesla had established a special committee to evaluate the new compensation plan. This follows a Delaware court that beats his previous $56 billion package.
The board hopes to link future compensation to Tesla’s performance, stock prices and growth targets. They are also considering ways to compensate Musk for work already done if the old plans don’t revive. At X, user @tslachan cheered on the move, saying, “Elon is the CEO who can make Tesla the most valuable company in the world.”
What’s next?
Mask’s commitment resets the story. He’s back, at least for now. The board will support him. The analyst seemed relieved. However, Tesla’s path to recovery is not easy.
Damages to brands, especially in the liberal market, may not be corrected. Wedbush estimates a 10% permanent hit to demands directly linked to Musk’s political reputation. And the company is putting pressure on all sides – competition, trust, product delivery.
For investors, mask return could be a turning point. His vision is ambitious, but his execution must speak more eloquently than his promise.
All eyes are in Tesla. Also.
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