Investors Tesla have easily received Elon Musk's statement on the reorientation of the company, but the recent CEO's recent political implications continue to affect the image of the car manufacturer. The announcement comes in the context in which Tesla has reported a 71% decrease in net profit and a marked decrease in sales income.
Elon Musk at the inauguration of a Tesla factory in Germany. Photo: EPA-EFE
Tesla shares recorded on Wednesday, April 23, an increase of almost 8%, after Elon Musk announced that, starting next month, it will reduce involvement in Donald Trump's team to one-two-day, Reuters reports.
Musk's increasingly visible involvement in American politics and the support declared for right-wing movements have generated negative reactions, including protests and vandalism in Tesla showrooms in several cities.
“His time is very valuable and I think Tesla needs all his attention. But that does not change the fact that many people do not want the Tesla brand. I do not know how this can be repaired.” said Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management and Investor in the company.
Despite the recent growth, Tesla shares lost about 50% of the value from the maximum reached in December, which means a decrease in stock capitalization by over $ 500 billion. However, if the positive positive trend, the company could recover about 50 billion, reaching a market capitalization of about $ 766 billion.
Tesla reputation, increasingly fragile
Analysts warn that Tesla's reputation is increasingly fragile, in the context in which the public's perception plays a key role in future sales. Even though Musk promises to focus more on the company, branding experts say that damage is already done.
“Even if Musk would completely withdraw from politics and dedicate 100% tesla, it is too late-the perception has already changed,” said Sue Benson, CEO of The Behaviours Agency.
The company continues to rely on extending the accessibility of its products. Tesla reconfirmed plans for launching a low-cost model in 2025, but warns that the production rate could be slower than previous estimates. The energy storage division is most exposed to the risks generated by international rates, given the use of China battery cells. Although Musk publicly supported the reduction of tariffs, he said that the final decisions in this regard are back to Donald Trump.
“I expect this year to have some unpleasant surprises,” ” said the CEO.
In turn, the company's financial director Vaibhav Taneja acknowledged that “The acts of vandalism and unjustified hostility towards the brand and employees” have had an impact on sales in certain regions.
Tesla warns that “Changes in political climate” could affect the demand for its short -term products. “Until the brand does not clearly distance itself from the accumulated political luggage, it does not matter how much time dedicates to the company”, Warns Gabor Schreier, creative director at Saffron Brand Consultants.
