Musk assured employees that he believes in the company's long-term success, stating that Tesla will eventually become "the most valuable company on Earth." He also encouraged employees to ramp up deliveries at the end of the quarter by volunteering to help with delivery efforts.
Tesla Shares Rebound Following Production Schedule Concerns
After an 11% drop in shares on Tuesday due to concerns over reduced production schedules at the Shanghai plant in January, Tesla's shares rebounded on Wednesday. The drop in shares was also attributed to fears of decreasing demand in the world's largest car market.
Morgan Stanley Cuts Tesla Price Target
Morgan Stanley analysts have reduced their price target for Tesla shares from $330 to $250, citing a potential shift in the market from a supply exceeding demand to demand exceeding supply in 2023.
Tesla Struggled with Demand and Distractions in 2020
Despite Musk's assurances to employees, Tesla has faced challenges this year with softening demand for electric vehicles and Musk's own distractions with running his Twitter account. The company has also had to offer discounts on its vehicles in both the US and China to boost sales and meet delivery goals.
Analysts Predict Fourth Quarter Deliveries for Tesla
Analysts are predicting that Tesla will deliver approximately 442,452 vehicles in the fourth quarter of this year, according to Refinitiv data. This is a significant increase from the same period in the previous year and is likely aided by the push for increased deliveries at the end of the quarter.
Tesla Stock Compensation for Employees
Many Tesla employees, including factory workers, have received stock compensation as part of their employment. However, the company's plummeting stock price has hurt the value of these shares and may be a source of concern for employees.
Despite the challenges that Tesla faced in 2020, Musk remains confident in the company's long-term success and has urged employees to focus on delivering strong performance rather than getting caught up in stock market fluctuations. Analysts are predicting a strong finish to the year for Tesla in terms of vehicle deliveries.