On Monday, various media outlets reported that Elizabeth Warren, a Democratic senator from Massachusetts, sent a letter to the US Securities and Exchange Commission (SEC) calling for an investigation into Tesla and its board of directors. The letter alleges potential conflicts of interest, misappropriation of corporate assets, and negative impacts on Tesla shareholders stemming from CEO Elon Musk’s Twitter activities.
As more information emerges, it’s becoming evident that Warren’s attack on Musk is a political stunt that’s meant to suppress Tesla’s value right at the moment when the company is about to soar to new heights.
Tesla is set to release its second-quarter financial results on July 19, two days after Warren’s letter. Tesla garnered positive attention from investors with its strong Q2 delivery figures. These delivery figures were achieved through price reductions aimed at stimulating demand and making Tesla’s EVs eligible for tax credits under the Inflation Reduction Act.
During the second quarter, Tesla manufactured a total of 479,700 vehicles, delivering 466,140 units. This represents a substantial 83% increase compared to the same period last year and a 10% rise from the previous quarter.
Analysts predict that Tesla’s Q2 revenue will experience a notable year-over-year growth of over 43%, reaching $24.3 billion. Even with lower profit margins caused by substantial price cuts, Tesla’s adjusted earnings per share (EPS) are projected to rise by about 4% to $0.79.
Moreover, on Monday, Wells Fargo raised its 12-month price target on Tesla stock to $256.00.
Warren’s SEC letter is the latest attack in her long-standing war with Musk. In December 2021, Warren spent thousands of dollars in Facebook ads attacking Musk, accusing him of being a “freeloader.” In response, Musk stated that his 2021 tax bill would be the largest personal tax bill of any American in history. Musk also mocked the Massachusetts lawmaker, nicknaming her “Senator Karen.”
Image source: FORTUNE, https://shorturl.at/bEV19. Image cropped.