Tesla CEO Elon Musk had some interesting thoughts to share about the stock market’s wild swings, calling it a ‘rollercoaster’ during a recent town hall event in Lancaster, Pennsylvania. The event was a bit unusual for Musk, as he was campaigning for former President Donald Trump.
Musk’s analogy comes on the heels of a dramatic surge in Tesla’s stock price over the past week. The stock had been on a downward trend since the beginning of the year, but a strong third-quarter earnings report and upbeat forecasts from Tesla sent it skyrocketing. The company reported earnings per share of 72 cents, exceeding Wall Street expectations, and Musk even projected a 20% to 30% increase in vehicle sales for next year. This positive outlook addressed investor concerns about a potential decline in demand for electric vehicles.
Musk’s comments about the ‘rollercoaster’ market were accompanied by praise for Warren Buffett, the legendary investor and CEO of Berkshire Hathaway. Musk has expressed admiration for Buffett’s investment strategies in the past, even urging him to invest in Tesla back in 2021. He’s also commended Buffett’s approach to capital allocation, calling it superior to the government’s in 2018.
The recent surge in Tesla’s stock price, which climbed 8.4% year-to-date and around 23% in the last five days, has clearly caught Musk’s attention. His comments about the volatile market highlight the constant pressure that publicly traded companies face, as their fortunes rise and fall with the daily whims of investors. Despite the market’s unpredictable nature, Tesla’s recent performance and Musk’s positive outlook for the future suggest that the company remains on a strong growth trajectory.
