Tesla’s investors have begun to regain confidence in founder and CEO of Tesla, Elon Musk. There are still questions surrounding the automotive giant’s ability to reach second quarter production goals, but some positive numbers offered relief from an otherwise rough year for Tesla.
Last Tuesday, Tesla’s stock went up by 4.3% and it has risen by 7% in the last four days of trading. Throughout the earlier portion of the year, the stock price fell by about 33.3%, which means its market value had fallen by about $19 billion since December 31, 2018.
Investors largely attribute the change to the fact that Elon’s recent behavior on Twitter has been less erratic and quieter than it was previously. In fact, Musk made an agreement with federal securities back in April where his use of social media is concerned. He even stated that he would delete his Twitter account, but instead removed his profile picture and set his handle to “Daddy DotCom” on Sunday, which is likely in honor of Father’s Day.
These decisions have caused some level of controversy among Musk’s followers; however, shareholders are in support of the move. Musk got into trouble with the SEC because he posted tweets about Tesla’s production numbers and their financial performance.
Dan Ives, an analyst from Wedbush Securities stated that this move eliminates a certain level of risk from the equation. Ives went on to say that from the perspective of an investor, the less divulging of information Musk does, the better.
Musk was charged with contempt by the SEC back in February after tweeting about production forecasts. This was after he had initially agreed not to disclose information that had market moving potential without approval. Musk is also known for setting ambitious goals for production that the company usually fails to hit.
Tesla is expected to release second-quarter numbers as early as the beginning of July, and it is expected to release earnings on July 30.