Tesla's Distraction Manoeuvre
Elon Musk is known for his ability to distract attention from problems and create hype literally from scratch. This skill has had an extremely positive effect on the value of Tesla shares in the past. Indeed, it is always useful to have positive headlines about a company in the media, especially when the market situation is not in its favor.
The other day, we witnessed very strange reports on the SEC Form 8-K, where Elon Musk received the title "Technoking“, and Zach Kirkhorn (financial director) – ”Master of Coin". This "joke" allowed to distract the attention of market participants from the "Power Day “ - a major event, an analogue of ”Battery Day", from Volkswagen. The major financial media diligently covered the ridiculous job titles of Musk and Kirkhorn, while the event from rival Tesla was almost completely ignored.
Moreover, Tesla has long resorted to a similar strategy. On March 7, letters from Tesla employees were published on Twitter, where they discussed the fact that the company's autonomous cars will not be as perfect as previously thought. However, before the market opened, investors were already busy discussing more recent news related to how Tesla is creating a huge battery to help Texas with the problems that have arisen.
Last week, a fire broke out at a factory in Fremont, the consequences of which threaten the release of the Model Y. The next morning, the focus was shifted to a possible cooperation between Tesla and India's Tata Motors.
Last Friday, a Tesla shareholder, unhappy with Musk's strange tweets, sued the company's CEO. A couple of hours later, investors were already discussing the expansion of the "FSD Beta program".
Thus, when investors see the next funny or positive news about Tesla, they need to ask the question – and whether the company has any problems with the release of products? Or maybe someone sued Tesla?