Musk pursues achieving "maximum power and wealth" as his objective.
Tesla witnessed a substantial boost in net income during the third quarter, with the figure surpassing expectations and exceeding the figures from the same period last year. This optimistic news was shared by auto analyst Jürgen Pieper during an interview with ntv. However, Pieper emphasized that this improvement shouldn't be seen as a broader revival in the electric vehicle sector, particularly in Germany, where demand for vehicles, electric or otherwise, remains quite sluggish.
Pieper was then probed about Tesla's CEO, Elon Musk, and his political affiliations, notably his support for Donald Trump. Pieper offered his observations, stating, "Power is what Musk craves. The more power, the more fortune. Being in close proximity to a potential U.S. President like Trump would place Musk in an incredibly influential position." However, it's worth noting that Trump is not typically known for championing electrification. Pieper speculates that the intersection of these two prominent figures could result in even more power and influence.
Musk's political activities may have a ripple effect on Tesla's customer base, according to Pieper. "Tesla's clientele is a completely different breed from that of a Donald Trump," Pieper opined. Trump's financial views lean more towards preserving the status quo, which could potentially conflict with Tesla's customer base in the long run.
In the stock market, there seems to be no instant reaction to this news yet. Tesla's stock price surged by approximately 12% during post-hours trading. Despite this, Pieper believes that Tesla's 'magic' may have started to fade, with the stock failing to keep pace with the overall market growth for the past 12 months. According to Pieper, Tesla is still significantly overvalued compared to European industrial companies, with Mercedes worth significantly less than a tenth of Tesla's value. Even the collective worth of European manufacturers falls far short of Tesla's value.
Between July and September, Tesla reported a net income of approximately $2.18 billion (around $2 billion), representing a 17% increase from the same period last year. Revenue also increased by 8%, reaching $25.2 billion. In the first two quarters, Tesla's income had fallen as it cut back on prices and reduced its workforce. In the third quarter, however, Tesla reported a decrease in material and freight costs.
Despite Tesla's impressive third-quarter earnings, Pieper raises concerns about the broader economy, stating, "The economy as a whole is not showing the same resilience in the electric vehicle sector, especially in Germany, where demand for vehicles, electric or otherwise, remains sluggish."
Furthermore, Pieper hints at potential long-term conflicts between Tesla's customer base and Trump's financial views, stating, "Tesla's clientele is a completely different breed from that of a Donald Trump, whose financial views lean more towards preserving the status quo, which could potentially conflict with Tesla's customer base in the long run."
