Elon Musk, CEO of Tesla Inc (TSLA.O), told employees that they should not be “troubled by stock market craziness” after the company’s shares fell nearly 70% this year due to concerns about softening demand for electric vehicles and Musk’s distraction with Twitter.
Musk stated in an email sent to staff on Wednesday and reviewed by Reuters that he believes Tesla will be the most valuable company on the planet in the long run.
He also urged employees to increase deliveries by the end of the quarter, following the automaker’s offer of discounts on its vehicles in the United States and China.
“Please go all out for the next few days and, if at all possible, volunteer to help with delivery. It will make a significant difference! “In the email, he stated.
According to Refinitiv data, analysts expect Tesla to deliver 442,452 vehicles in the fourth quarter.
Tesla’s share price decline has reduced the value of shares owned by the EV maker’s employees. Tesla has provided stock compensation to the majority of its employees, including factory workers.
The stock recovered on Wednesday after falling 11% the previous session on a Reuters report that the automaker planned to run a reduced production schedule at its Shanghai plant in January. The news raised concerns about a drop in demand in the world’s largest auto market.
“Also, don’t be too concerned about the stock market’s craziness. The market will recognize our continued excellent performance as we demonstrate it “He stated.
“In the long run, I believe Tesla will be the most valuable company on the planet!”
Morgan Stanley analysts reduced their price target for the stock from $330 to $250, predicting that the previous two years of demand exceeding supply will be “substantially inverted” to supply exceeding demand” in 2023.