Elon Musk, CEO of Tesla, sat with his 16 executives on the stage on Wednesday to persuade the investors, who are worried that Musk is distracted from his role and busy with Twitter Inc., his recent purchase. This development comes as investors eagerly await the latest news on developing a cheaper and more innovative electric vehicle.
Efforts are being made to create the next-generation vehicle
According to the information gathered from the US news website, Musk, and his team explained the efforts put in by the company, like cost-saving measures, software development, vertical integration, and battery manufacturing, to shareholders in a chat spanning four hours on Wednesday. In the conference with investors, Musk highlighted the work put in to lay the foundation for the development of next-generation vehicles. He also said the company will increase deliveries from 1.3 million in 2022 to 20 million a year starting this year.
Commenting on the crowded team on the stage, Musk said we have a lot of strength here, showing his managers around him. The show is amid a debate by investors about how to judge Tesla: is it a high-growth company, a lower-valuation traditional car company, or a higher-net-worth tech company? The value of Tesla dramatically swung in the recent period amid worries about Musk’s Twitter drama. There is also a concern about whether Tesla could continue the growth that it has experienced since unveiling the compact Model 3 car in 2017.
Investors view the deal with Twitter as detrimental to the growth of Tesla
Many investors view the deal with Twitter as detrimental to the interests of Tesla. Sand Hill Global Advisors LLC’s CIO, Brenda Vingiello, said Musk was trying to demonstrate that Tesla is more important than him in the present scenario of distraction with the use of Twitter. While interacting with investors on the stage, Musk has not received even a single question about his Twitter, which he acquired in a deal valued at $44 billion in October 2022. Musk was explaining how the team was engaged in slashing costs, paving the way for continued growth, and how he is engaged in turning around Twitter through restructuring from a money-losing company to a profitable one.
Some shareholders have even asked who will succeed Musk as CEO at Tesla, and others have lobbied that Musk must relinquish the post of CEO at Twitter. In a response to the queries posed by the investors, Musk said he does not miss any important meetings at Tesla and is leading the team to perform at the highest level. The EV major has reported record profits in 2022.
According to the latest USA news, several investors consider Musk, who has drive and vision, as extremely important for Tesla’s growth. He has been instrumental in the growth of Tesla for several years in a row. However, some of his deputies have played spoilsport in his promotion events.
Franz von Holzhausen, the design chief of Tesla, struck the window of the Cybertruck with a metal ball while Musk was portraying it as unbreakable in 2019. On Wednesday, Franz discussed the evolution of the Tesla design process and ways to improve efficiency. However, he has not attempted throwing a metal ball this time.