Oh, Elon… Crazy Like a Fox, or Just Plain Crazy?

by | Apr 23, 2024

It’s never a good idea to anger your best customers. But Elon Musk has always been one to do things differently.

As the CEO of Tesla, as well as owner of the social media platform X (formerly Twitter), Musk’s penchant for polarizing statements has not only sparked controversy but has also begun to reflect in both companies’ performance and reputation.

Under Musk’s leadership, Tesla has seen a noticeable dip in its market share among left-leaning EV buyers — a key demographic for the electric vehicle industry.

This shift coincides with an increase in Musk’s controversial tweets and public statements, which have included endorsing problematic content and outright conflicts with advertisers and the media.

The fallout? A decrease from 40% of Tesla’s sales in 2022 to just 15% at the beginning of the 2024 model year among Democrats, even as competitors like Cadillac and Hyundai begin to carve out larger segments of the market.

The social platform X, formerly known as Twitter, has not been immune to controversy either. Musk’s aggressive stance towards advertisers who chose to pull their campaigns from X — going as far as cursing at them — has led to a significant reduction in advertising revenue.

This confrontational approach has not only damaged relationships with existing advertisers but potentially wards off future partnerships, critical for the platform’s sustainability and growth.

Adding to the drama, financial analysts and investors are watching closely as Tesla approaches a critical earnings announcement — today after the market closes.

This report is anticipated to be the worst in seven years, a crucial period that could determine the future trajectory of the company. The stakes are high, and the timing is critical.

Meanwhile, Musk has given his employees at X one year to create a product that will replace the typical bank account. It seems like a moonshot project — exactly the kind that Musk has successfully pulled off in the past.

Could it be that Musk isn’t just crazy, but “crazy like a fox”?

Meanwhile, our own Jeffry Turnmire, often tells reminds us that the news tends to lag behind the charts by about six months, meaning that while bad news is currently piling up for Tesla (TSLA), the stock could surprise everyone and turn around, heading north again after its years-long sustained downtrend.

Tesla’s stock has reached Jeffry’s long-term downside target. Now at a crossroads, it’s a make-or-break moment for Tesla: Will the stock recover, bouncing back to former glories, or will it continue to suffer as its CEO’s online antics potentially alienate a significant portion of its consumer base?

Stay tuned and get Jeffry’s full TSLA analysis on Morning Monster.

— The Prosperity Pub Team

P.S. UPDATE: Did Jeffry call another bottom? Tesla (TSLA) bounced hard after reporting what would normally be considered terrible earnings. But the expectation was that they would be much worse, so some are saying that Tesla bounced because earnings were not as bad as they could have been. Others, like our own Nate Tucci are saying that Elon changed the narrative about Tesla.

But as Jeffry always tells us: The news doesn’t make the charts. As we discussed above, Jeffry has had a long-term downside target on Tesla for months now. Is it pure coincidence that Tesla bounced exactly where Jeffry said it would? Or could this be yet another another example of his uncanny ability to read the market?

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