Tesla's stock surged 7.7% in after-hours trading, yet investors continue to liquidate their shares amidst growing corporate issues.
Stock Decline and Departure of Major Investors
On Wednesday, investment advisor Gary Black announced he has sold all of his Tesla shares, marking the first time since 2021 that he has held zero shares. He noted that 'Tesla's valuation has become disconnected from fundamentals,' selling his shares at $358 each, while the 2025 P/E ratio has risen to 188 as earnings projections continue to decline.
Shareholders Call for Musk's Increased Commitment
A group of activist shareholders wrote to Tesla board chair Robyn Denholm, urging that Elon Musk should commit to working at least 40 hours a week. The letter, signed by SOC Investment Group and other investors, highlights Musk's focus on politics as detrimental to the company's image and sales.
Response to Declining Sales and Reputation
Tesla's latest earnings call revealed a 71% drop in profit and a 13% fall in sales compared to the previous year. The shareholders termed the situation a 'crisis', noting the board's failure to act in shareholders' best interests.
These events reflect the escalating tension between shareholders and Tesla's management, which may impact the company's future and market position.
