In the last week, Tesla’s stock price has dropped significantly—by more than 15%—and investors are now more irate due to CEO Elon Musk’s actions during the company’s most recent third-quarter earnings call. The situation became so bad that well-known financial analyst and Tesla investor Kevin Paffrath was vocal about his concerns regarding Musk’s recent actions, even going so far as to say that the CEO was “crying like a baby.”
Paffrath didn’t hold back in an open interview with Yahoo Finance, labeling the earnings call “terrible” and accused Musk of exhibiting a “complete lack of leadership.” He observed, “I mean, he was on the verge of tears. It demonstrated a total absence of leadership. Tesla now lacks a leader in the company.”
Paffrath’s criticism echoes the sentiments of many other Tesla investors who are growing increasingly frustrated with a CEO they believe is becoming increasingly distracted. Musk’s tendency to dwell on issues like rising interest rates and the Cybertruck’s pricing overshoot, combined with concerns about subpar fit and finish, has left investors concerned about the company’s direction.
Moreover, Musk’s numerous commitments, including Tesla, SpaceX, and his involvement with X-formerly-Twitter, have left some investors feeling that he is spreading himself too thin. Paffrath argued that Musk’s personal challenges, such as legal and custody battles, cannot justify his behavior as a CEO.
Despite this, Paffrath maintained a cautious optimism over Tesla’s future, praising the company’s inventive products and the commitment of its employees. He proposed that instead of having a CEO who whines without providing specific solutions, the emphasis should be on figuring out a way ahead.
In the field of electric vehicles, Tesla is still a leader in spite of the recent upheaval. Investors want leadership that is more reliable and has a well-defined plan for navigating difficult times. Although Musk’s ideas and passion have been essential to Tesla’s success, there is increasing demand on him to show a firmer hand as the business confronts major obstacles in the future.