During Tesla’s upcoming quarterly earnings call, CEO Elon Musk is expected to address questions about his political activism in support of Donald Trump. Retail shareholders have expressed concerns about Musk’s public support of Trump, and how it may affect Tesla’s brand integrity and shareholder value. However, the financial impact of Musk’s politics on Tesla is difficult to quantify.
Analyst Gene Munster has estimated that Musk’s political commentary may have reduced Tesla’s deliveries by 5-10k units during the quarter. This could have potentially led to a 4% increase in U.S. numbers and almost a 2% increase in total numbers. Additionally, Tesla’s brand value has declined by 9% this year, according to Brand consultancy Interbrand.
While Musk’s political views have garnered media attention, they have not been a major topic of discussion during shareholder meetings or in analyst notes. Musk’s focus on politics, including his support for Trump and his efforts to advocate for government efficiency, has raised concerns among investors and analysts.
Despite the controversies surrounding Musk’s political activism, Tesla continues to focus on its core business, including plans for dedicated robotaxis, driverless software, humanoid robots, and supercomputers. However, experts warn that Musk’s political engagement could pose a risk to Tesla’s brand and customer base.
Overall, Tesla’s shares are down 14% for the year, reflecting investor concerns over Musk’s political activities. As Tesla prepares to release its third-quarter results, all eyes will be on Musk as he navigates questions about his political allegiances and their potential impact on the company’s performance.
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