By Benjamin Pfeffer, Staff Writer
Tesla is not going to flop any time soon. Let’s get that out of the way. The products that Tesla produces, backed by SpaceX through their CEO Elon Musk, are unmatched on the ratio of production level to quality. No other company can create the number of products that Tesla does while still keeping up the quality of the products, yet.
All the time companies are thought of as ‘erratic’ when, over time, they’re just increasing in value. People have thought Tesla was going to crash a few times before, and this time the only difference is Musk.
Musk has had some interesting behavior over the past few months. This is a main reason why Tesla stock prices have wavered.
I believe the only change from the other times people thought Tesla was going to crash is that Musk has started caring less about his image. He has called a rescue diver a “pedophile” on twitter and smoked a joint on a livestream. Do you really believe that just because the CEO did a few stupid things that didn’t even directly affect the company, Tesla is going to flop?
It is reasonable to believe that some people will sell the stock since they disagree with his decisions or don’t feel safe that he’s in charge of the company. The stock price will obviously go down temporarily. But will it cause the entire company to flop? No. Now would be a great time to buy stock in Tesla, people are doubting the company and it will inevitably rise again.
If you disagree you’re probably forgetting that Tesla isn’t on a downward spiral. It can produce something and shock the world again any day with a new, better, safer product. The funding for the company is in the billions. It even has a safety net with the projected capability to get to Mars in the future.
The fact that Elon is being questionable in the media doesn’t mean much. When people buy Tesla products and Tesla stock they are generally not buying Elon Musk. They are buying because they either believe in Tesla’s ability to produce an even higher level of products in the future or because they currently want the product his company creates. Simply because the CEO of the company made some stupid decisions that had nothing to do with the company itself, the Tesla company will not fail.
I believe that Tesla just needs to forget about what Elon Musk’s public image is and focus on creating the next best thing. If they get caught up worrying about what Musk is doing, then they will stop inventing and producing at the level and quality that they are capable of.
On August 7, Musk stated that he was considering making the company private, according to Marketwatch.com. However, in his statement he claims that it will be “funding secured.” Three weeks after this occurred, Musk said in a blog that Tesla will remain publicly traded because he says shareholders believe that the company is better off remaining as a publicly traded company. So, it is staying on the market. If you are majoring in the business or financial field, I recommend buying soon, when it’s relatively low.
The Tesla stock has recently gone down close to midnight on Tuesday, Sept. 18. This was because there has been a report saying that Tesla was under criminal investigation for Musk’s tweet about Tesla possibly going private. Tesla did the smart thing and stated, “We respect the DOJ’s desire to get information about this and believe that the matter should be quickly resolved as they review the information they have received,” according to marketwatch.com. Since then, the stock price has gone back up to higher than it has been for almost half of 2018. The aftermath of this situation is that Musk alone will most likely be fined, but not Tesla.
I strongly believe that Tesla is here to stay. The company has had its mishaps and unfortunate situations just like every other company, but due to the funding, production capability, and product quality, the company is going to become more successful than it has ever been. If Tesla isn’t the future, it certainly will be the basis of it. Tesla has not peaked yet.
PHOTO COURTESY: HYPEBEAST