To say that Tesla stock and its investors have had a rough year would be an understatement. On Friday, the last trading day of the year, TSLA shares closed at $123.18 per share. The company’s market cap was also $388.97 billion. Overall, the numbers in 2022 meant a drop of about 65%.
Despite this, Elon Musk has reassured the electric vehicle maker’s supporters that while Tesla is vulnerable to short-term volatility, the company itself is on solid ground. Musk first responded to a post from the Tesla Owners of Silicon Valley group, which noted that numerous bulls have been impacted by TSLA’s stock decline over the past few weeks. Musk noted that Tesla’s fundamentals are actually really good.
“The long-term fundamentals are extremely strong. Short-term market madness is unpredictable,” Musk said wrote.
In an apparent attempt to emphasize his previous point, Musk asked the Tesla community in a later tweet to take his previous comment to heart. “Please take those two sentences to your heart!” Musk wrote in a reply to a longtime Tesla bull and EV advocate.
Please take these two sentences to heart!
— Elon Musk (@elonmusk) December 31, 2022
Musk’s comments are likely to be appreciated by Tesla investors, although some bulls’ reservations are understandable. Finally, some of the more notable declines in TSLA stock this year followed the CEO’s decision to sell some of its stake in the electric vehicle maker to support its acquisition of social media platform Twitter. However, Musk recently noted that he plans to refrain from selling TSLA stock for at least 18 to 24 months.
Musk’s sell-off in TSLA shares, as well as sentiment among some of the company’s bulls, have created polarizing views of the electric vehicle maker. On Wall Street alone, some optimistic analysts like Wedbush’s Dan Ives – who currently has an “outperform” rating on TSLA – have called for notable changes in Musk’s leadership style at Tesla and Twitter for the following year to address the negative sentiment around it the EV manufacturer.
Disclosure: I am long TSLA.
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Elon Musk reassures investors: Tesla’s “long-term fundamentals are extremely strong”
