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Why Tesla Slipped Today | The Motley Fool

What happened

Tesla (NASDAQ:TSLA) CEO Elon Musk is famous — or notorious, depending on your point of view — for his pronouncements. The electric vehicle (EV) maker’s stock price can gyrate up or down depending on what Musk expresses on a particular day.

Sure enough, the boss’ comment about an upcoming product made for lively trading Thursday with the shares, the price of which ended the day marginally lower.

Image source: Tesla.

So what

The subject was the futuristic Cybertruck, Tesla’s version of a pickup. In an exchange on Twitter, Musk wrote the following:

“To be frank, there is always some chance that Cybertruck will flop, because it is so unlike anything else. I don’t care. I love it so much even if others don’t.”

Musk was only repeating the “F” word. His tweet was a reaction to a story published Thursday on niche website The Truth About Cars with the incendiary headline “Opinion: Tesla’s Cybertruck Will Be Company’s First Flop.”

In the story, writer Tim Healey took aim at the EV‘s looks, and opined that rival pickups — including the high-profile Ford (NYSE:F) F-150 Lightning — will likely be “more usable as trucks.”

Now what

CEOs aren’t supposed to admit that their products could be duds. But Musk has a high profile and a following largely because he isn’t a CEO in the traditional mold. While some people undoubtedly turned bearish on his pronouncement about the Cybertruck, plenty of investors clearly still believe in the company’s mission — and in the actions of its colorful leader.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.


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