Musk learned a lesson, money is flowing into the stock: Varney

Investors felt more comfortable with Musk at the helm: Varney

FBN’s Stuart Varney on the future of Tesla under CEO Elon Musk.

There are some remarkable characters in the business world these days. None of them get as much attention as Elon Musk, the founder of Tesla.

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Late Wednesday, Tesla announced its financial results. It wasn’t just the numbers that were the focus. No, it was Musk himself. His demeanor. His tone, his personal response to the analysts who judge his company.

I was watching the stock price as Tesla’s numbers arrived. It went up. Then came the much anticipated conference call, handled in-person by Elon Musk. Then the stock really went up – it popped. And it was Musk’s performance that did it.

On the call, he abandoned his hostility. He dropped the anger. A few months ago, on a similar call, he had gone after anyone who raised any doubts about Tesla’s performance. That didn’t go down well. The stock dropped. Billions wiped off Tesla’s value. Questions were asked: why is such a petulant young man in charge of the most important car company in the world today? Don’t we need a mature executive in the job?

I said it myself.

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However, on Wednesday, Musk set out to change the narrative, as they say. He actually apologized to the analysts he had insulted. He claimed he had been tired, working 120-hour weeks. His tone was conciliatory. He was contrite and it worked. Investors felt more comfortable with Musk at the helm.

There is a lesson here: you may be a genius. You may have vision. You may have started a brilliant new company. But you can’t bring in the money if you don’t execute the plan and conduct yourself like a responsible adult. After all, when you’re putting your money on the line, you’ve got to trust the company and the person you’re giving it to.

I’m sure it took great effort, but Musk seems to have learned the lesson. The money is flowing into the stock.

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