Tesla stock and its investors have had a tough year, closing at $123.18 per share on Friday with a market capitalization of $388.97 billion, meaning the company’s stock price is down about 65 percent in 2022.
Yet despite this, Elon Musk assured investors in the electric car maker that while Tesla is prone to short-term volatility, the company itself stands on solid ground. Elon Musk responded to a post from a group of Tesla owners in Silicon Valley, which noted that numerous bulls have been affected by the decline in Tesla’s stock in recent weeks. Elon Musk noted that Tesla’s fundamentals are actually really good.
“Long-term fundamentals are very strong. Short-term market craziness is unpredictable,” Elon Musk wrote.
As if to underscore his point, Elon Musk asked people to take his comments to heart in a later tweet, “Please take these two sentences to heart completely!”
Some of the notable drops in Tesla’s stock price this year came after Elon Musk decided to sell some of his stake in the electric car maker to support its acquisition of the social media platform Twitter. Elon Musk also recently noted that he no longer plans to sell any more Tesla shares for at least 18-24 months.
Opinions of the electric car maker are currently polarized, with some bullish analysts on Wall Street, such as Wedbush’s Dan Ives, who currently has an Outperform rating on Tesla, calling for a significant change in Elon Musk’s leadership style at Tesla and Twitter over the next year to address the negative sentiment surrounding the electric car maker.
