The automaker’s shareholders’ meeting was held in Austin, Texas.
(Photo: Reuters)
san francisco According to CEO Elon Musk, the electric car pioneer Tesla, as the market leader, is not immune to a downturn in the global economy. “Tesla is not immune to the global economic environment. I expect things to be difficult on a macro level for at least the next 12 months,” Musk said Tuesday at the company’s annual shareholder meeting in Austin, Texas.
Because of the difficult times, the company will deviate from the previous course and advertise its vehicles. In April, Musk said Tesla would prioritize sales growth over profit after the company missed its margin target due to aggressive price cuts.
Investor concerns also centered on the CEO’s lack of succession planning, falling demand and his involvement with social media platform Twitter, which he bought in October. “There was a short-term distraction because I had to perform major open-heart surgery on Twitter to ensure the company’s survival,” Musk said. Last week, he announced that former NBCUniversal advertising executive Linda Yaccarino would succeed him as Twitter CEO and that he would focus on products and technology.
Tesla shareholders quickly voted in favor of the board’s recommendations on almost all of the proposals on Tuesday. The company’s shares rose 0.6 percent in after-hours trading. The stock has fallen about 60 percent since its all-time high in November 2021, amid Musk’s distraction from Twitter and concerns about slowing demand for electric cars.
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