For all of Elon Musk's idiosyncrasies that frequently put him in the spotlight (and lawsuits with the U.S. Securities and Exchange Commission, for that matter), it's hard to deny his business acumen.
Yes, Tesla shares plummeted Thursday. The figure was so bad that it's the stock's steepest fall since July 24, 2019, according to data from Bespoke Investment Group.
But recall how Tesla, not so long ago in December last year, had its "worst month, quarter and year on record," to quote the article's headline. It sank to a 52-week low of $101.81 on Jan. 6 this year. Yet the share managed to double its price to close above $200 in less than a month after that.
Of course, Tesla isn't doing so hot now, but my point is it's important to take a long-term view of the company. Indeed, Cathie Wood has given it a staggering 1,127% upside from its price on Thursday, agreeing with Musk's emphasis on sales volume over profit margins. Telsa will play a huge role in — and benefit from — a future self-driving revolution, Wood believes, calling it "one of the most important investment opportunities of our lifetimes."
Musk is, again, at the frontier of the future with SpaceX, his private spacecraft company. Admittedly, Starship exploded after taking off. But such occurrences are part and parcel of spaceflight testing. NASA Chief Bill Nelson even congratulated SpaceX for its flight attempt despite the explosion — or what SpaceX is calling a "rapid unscheduled disassembly."
Which might be a good summary of Twitter, Musk's most contentious company — but investors needn't worry about it since Musk has taken it private, anyway.
Elsewhere in markets, the Dow Jones Industrial Average fell 0.33%, the S&P 500 lost 0.6% and the Nasdaq Composite sank 0.8%, dragged down by losses in technology stocks, such as Nvidia's 2.96% fall and Meta's 1.22% slide. Worries over shrinking margins despite companies beating revenue expectations are plaguing most investors — other than Musk and Wood, that is.
