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Sales of the company’s cars are falling, but investors are focused on autonomous driving and M connections. Musk with President-elect Donald J. Trump.
By Jack Ewing
Tesla’s electric car sales have stalled. But Wall Street doesn’t seem worried.
Investors are positive about the company’s progress in autonomous driving and believe CEO Elon Musk will use his newfound influence in Washington to Tesla’s advantage. Even after Friday’s drop, the company’s stock value has risen nearly 80% since early November.
Mr. Musk’s price increase in Tesla has consolidated his prestige as the richest user on the planet. After spending more than $250 million on Donald J. Trump, he has become so close to the president-elect that some other people have started calling him “co-president. “
Still, Tesla’s stagnant sales do not bode well for corporate or overall sales of electric vehicles, considered a critical tool against climate change. While automakers like General Motors and Hyundai offer a developing range of electric vehicles, Tesla still accounts for nearly a share of all electric car sales in the United States and sets the pace when it comes to technology.
Musk has spoken about many topics on X, the social media platform he owns. He speaks of public spending as wasteful, of immigrants he blames for crime, and of his confidence that “the awakened brain virus is one of the greatest threats to humanity’s lifestyles. “
But he remains largely silent on plans to revive Tesla sales, offering some main points about a new economy car that could sell for as little as $25,000. The company has promised to start selling a more affordable vehicle until mid-2025 to bring electric driving to the success of the middle class.
Tesla and Musk responded to requests for comment.
Some analysts wonder whether he has lost interest in cars as he juggles numerous other activities. They include X; SpaceX, the federal government’s main rocket contractor; and his role as co-head of a newly formed Department of Government Efficiency, which will advise Mr. Trump on slashing federal spending.
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