This year has been a testament to Elon Musks ability to lead Teslas shares into and out of trouble.
Its been a volatile time even by Tesla standards, with the chief executive officer battling for more control of the company, turning back from a 25000 R459912 electric vehicle and ordering mass layoffs. These erratic episodes helped send the stock on a 43 plunge as of April 23, the day Tesla last reported earnings.
The shares have been on a tear since then, despite an uninspiring set of results and the downward trend in expectations for the second-quarter figures Tesla will report Tuesday. The main rouser of a rally that added more than 386 billion to Teslas market capitalisation in just 11 weeks was none other than Musk.
The CEO managed to get investors to pay more mind to Teslas potential in a future dominated by artificial intelligence than its sluggish sales and earnings at present. His astute sense of what the market wants to hear and incessant salesmanship will be put to the test after the close, when the company is likely to post lower revenue for the second quarter in a row and a fourth-straight drop in profit.
The real game-changer for Teslas valuation lies in Musks ability to convincingly position the company as a leader in AI and autonomous technology, said Adam Sarhan, the founder and chief executive officer at 50 Park Investments. This narrative shift is critical for justifying Teslas premium valuation compared to traditional automakers.
