Dec 28 (Reuters) – Tesla Inc ( TSLA.O ) Chief Executive Officer Elon Musk told employees they shouldn’t be “worried about the stock market madness” after the company’s shares fell nearly 70% this year due to electric vehicles and softening demand. Musk’s distraction with the launch of Twitter.
In an email to staff on Wednesday and reviewed by Reuters, Musk said he believes Tesla will be the world’s most valuable company in the long term.
He also urged employees to speed up deliveries later this quarter after the automaker offered discounts on its vehicles in the United States and China.
“Please make every effort over the next few days and volunteer to help with shipping if possible. It will make a real difference.” he said in the letter.
Analysts expect Tesla to deliver 442,452 vehicles in the fourth quarter, according to data from Refinitiv.
The sharp drop in Tesla’s stock price has hurt the value of shares owned by the power maker’s employees. Tesla offered stock compensation for most employees, including factory workers.
The company’s shares recovered on Wednesday after falling 11% in the previous session on a Reuters report that the automaker planned to cut the production schedule at its Shanghai factory in January. The news raised concerns about falling demand in the world’s largest auto market.
“Btw, don’t worry too much about the stock market craziness. As we show continued excellent results, the market will recognize that,” he said.
“Long term, I strongly believe that Tesla will be the most valuable company on Earth.”
Analysts at Morgan Stanley cut their price target on the stock to $250 from $330, saying the past two years of demand outstripping supply will “significantly reverse to supply outstripping demand” in 2023.
Reporting by Hyunjo Jin in San Francisco and Akash Sriram in Bengaluru; Editing by Matthew Lewis and Anil D’Silva
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