Musk tells Tesla employees hang on to stock after 50% plunge

Musk tells Tesla employees hang on to stock after 50% plunge

Elon Musk sought to reassure Tesla Inc. employees through what he referred to as “a little bit of stormy weather,” after the carmaker’s shares plunged more than 50% in just three months.

“If you read the news, it feels like Armageddon,” Musk said during an all-hands meeting broadcast late Thursday on X. The chief executive officer joked that he can’t walk past a television without seeing a Tesla on firethen mocked his detractors. “I understand if you don’t want to buy our product, but you don’t have to burn it down. That’s a bit unreasonable.”

The CEO then launched into a familiar pitch that Teslas will soon be capable of driving autonomously. Although the company has yet to execute on his predictions — Musk recently referred to himself as “the boy who cried wolf” — he reiterated a claim he’s made at least as far back as 2016 that Teslas are an eventual software update away from self-driving.

“What I’m saying is hang on to your stock,” Musk said, pausing for applause during the event that lasted past 10 p.m. local time in Austin.

Tesla shares rose as much as 1.8% to $240.48 shortly after the start of regular trading Friday. The stock has plummeted from a record high of $479.86 on Dec. 17.

The vandalism Musk alluded to has been part of a growing backlash against Musk’s role in President Donald Trump’s administration. Protesters have targeted the company’s showrooms, vehicles and charging stations in the U.S. and across Europe.

Tesla deliveries typically are slower every first quarter, but both sales and shipments have dropped precipitously in key markets early this year. In addition to political pushback, another factor at play has been the company pausing production of its most popular vehicle — the Model Y — to rework production lines and begin making a redesigned version.

“How are we doing on popularity? Well, we actually literally make the best-selling car on Earth, of any kind,” Musk said of the Model Y.

Tesla has said it will launch new, more affordable models in the first half of this year, but has offered little detail about what those vehicles will be.

Blowback against Musk spurred Trump to arrange a parade of Teslas on the South Lawn of the White House on March 11. This week, Commerce Secretary Howard Lutnick went on Fox News and urged viewers to buy Tesla stock. “It’ll never be this cheap again,” Lutnick said, potentially violating ethics rules.

“There are times when there are rocky moments,” Musk told Tesla employees. “But what I’m here to tell you is that the future is incredibly bright and exciting, and we’re going to do things that no one has even dreamed of.”

Dan Ives, a Wedbush Securities analyst and longtime Tesla booster, said the meeting was a “first step for Musk to show he is going to lead Tesla through this tumultuous period.”

Ives earlier this week issued a rare rebuke of Musk, urging the billionaire to pull back from the Trump administration and refocus on Tesla. He warned that brand damage had escalated into a “tornado crisis moment for Musk and Tesla.”

Although Musk has rallied Tesla employees in the past — urging them to curb spending and boost production in 2020, for example — he’s generally done so via internal emails. The company hasn’t held a public all-hands in the past.

Musk spoke mostly off the cuff for roughly half an hour before taking 30 minutes’ worth of questions. When asked by one employee whether he’d ever thought of making airplanes or trains, the CEO said he’s considered the former.

“I’d actually love to make airplanes, especially, but I’m stretched pretty thin,” Musk said. “I have, like, 17 jobs.”

Musk then mused about making an electric, supersonic vertical take-off and landing jet. “Maybe, at some point, we’ll do that,” he said.

This story was originally featured on Fortune.com

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