Tesla has lost 32% of its value in just one month and Elon Musk doesn't know what to do

Elon Musk has recently stated that Tesla could see a profit increase of 1,000% in the next five years, in response to the more conservative projections of an analyst who suggested a 256% increase.

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However, this statement has not had the expected impact on the market, as Tesla (TSLA) shares have fallen by 10% since Musk’s attempt to boost the company’s value.

Despite the CEO’s faith in Tesla’s future, several analysts have pointed out that his vision seems disconnected from the company’s current reality. Tesla’s shares are trading at a price 150 times its earnings, which already assumes significant growth of about ten times in the coming years.

Tesla is close to losing half of its value in less than two months

With a price-to-earnings (P/E) ratio of 15, market expectations seem demanding. Musk, by suggesting that “exceptional execution” is needed to achieve 1000% growth, may be underestimating the complexities Tesla is facing at this moment.

Additionally, the company is facing protests and boycotts that have affected its demand, further complicating its situation. Many Tesla supporters have placed their hopes in the recent update of the Model Y, believing that this model could reverse the negative trend and lead the company back to a path of growth. However, skepticism persists regarding this possibility.

Tesla shareholders may be forced to take action against Musk if pressure on the stock price increases, which could happen in the near future.

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The evident disconnect between Musk and shareholder expectations reinforces the idea that Tesla’s situation requires more focused attention than what its CEO has recently shown, particularly in an environment of increasing uncertainty.