Ever since Tesla (NASDAQ:TSLA) reported disappointing third-quarter earnings, things have gone from bad to worse. The electric vehicle (EV) leader has seen shares fall as both investors and consumers ponder its uncertain future. For many, the question has risen as to whether Tesla can maintain its dominance at the top of the EV sector. If the answer is no, some investors may trace that back to problems with the company’s leadership. More specifically, it may lead to further speculation about how Elon Musk is impacting TSLA stock. One analyst recently made the case for why he sees the Tesla CEO as compromising the company’s growth prospects.
Kevin Paffrath recently spoke to Yahoo Finance about his take on Tesla’s latest earnings and the problems he sees. The financial analyst and YouTube influencer didn’t mince words as he laid out his criticism of Musk. Specifically, he described Musk as a “little baby,” calling out his lack of leadership.
What’s Happening With TSLA Stock?
Since the earnings call last week, TSLA stock has been struggling. While shares have briefly rebounded today, shares are still down more than 14% for the past five days with no positive catalyst on the horizon. As a result, investors may be looking toward different investments as they ponder the once-dominant company’s questionable future.
Paffrath certainly falls into that camp. While discussing Tesla’s Q3 earnings, he called Musk out for being “afraid to be on an earnings call” and described the CEO as a “little baby.” The financial analyst made it clear that he sees Musk’s actions as highly problematic and that he feels the company is being fundamentally mismanaged, effectively left without any type of leader. He also speculated that this is why longtime Chief Financial Officer Zachary Kirkhorn recently stepped down. As Paffrath stated:
“I mean, he was almost in tears. It showed a complete lack of leadership. Tesla’s a leadership-less company right now and it’s terrible […] And this is a slap in the face to everyone. It’s not just the shareholders, but it’s a slap in the face to the other managers who are still there and the over 100,000 employees at Tesla. For a leader to cry about the economy rather than funneling that and coming up with a plan is pathetic.”
Another problem Paffrath flagged is Musk’s behavior on social media. He compared Musk’s behavior on X, the platform formerly known as Twitter, to that of former President Donald Trump. Additionally, the expert accused Musk of “slow walking” his plans for building a new Tesla gigafactory in Mexico due to concerns about the economy.
The Road Ahead
Paffrath urged Musk to negotiate with Mexico’s government to find the best path forward for Tesla’s new factory. He also stressed the importance of providing a vision for the company’s future, which he makes clear he sees Musk as lacking. While the analyst did praise Tesla’s progress in autonomous driving and developing the Cybertruck, he emphasized that investors need to see a clear vision before TSLA stock can start making real progress. As he noted, Musk’s behavior and lack of direction is likely to make investors nervous, particularly as rising interest rates cast further doubt over both the luxury EV market and the economy as a whole.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
