Tesla Stock Surges 35% Amid Workplace Culture Criticism
Tesla's share price has surged by 35% in the past month, closing at $445 on 30 September. However, the electric vehicle giant faces criticism over its workplace culture and high-level departures. The company is set to release its Q3 delivery numbers on 2 October, with analysts expecting around 448,000 units.
Elon Musk's Tesla stock price has been on a roll, climbing 35% in the past month to reach $445 at market close on 30 September. Despite this positive trend, the company is grappling with several challenges. Tesla's workplace culture has been scrutinized, with lawsuits alleging racial discrimination and sexual harassment. At least 10 of Elon Musk's direct reports have left the company in the past year, sparking concerns among investors about potential risks.
Investors worry that Elon Musk's behavior exposes Tesla to substantial legal, operational, and reputational risks. Morningstar analysts view Tesla shares as significantly overvalued, with a fair value estimate of $250 compared to the current price of $445. Elon Musk's purchase of an additional $1 billion worth of Tesla shares in September signals his confidence in the stock. However, Tesla's workplace culture and Elon Musk's politics may deter socially-conscious investors based on ethical grounds alone.
Tesla's share price has seen a significant increase, but the company faces headwinds due to its controversial workplace culture and high-level departures. As Tesla prepares to release its Q3 delivery numbers, investors will be watching closely to see if the company can maintain its momentum despite these challenges.
