Tesla’s hedge turns negative one week before crucial earnings call
Tesla’s media coverage this week has been particularly negative, and timing, which comes a week before arguably the most anticipated earnings call in recent memory. With Tesla reporting production and deliveries well above the Wall Street consensus, the anticipation for the Q1 2021 earnings call is slightly higher than usual, and the FUD (Fear, Uncertainty, Doubt) is. at an all time high.
There are always a few negative Tesla stories every week. It could be a story about some owners who didn’t receive adequate customer service, it could be a production bottleneck Tesla is facing. However, these are relatively small scale issues that are resolved within days in most cases. This week’s news has been geared towards more disruptive, long-term, macro-level issues, like a very public car crash that has both sides of Tesla’s circle colliding in the head, a test of a company well-known product review which has to do with the aforementioned accident and other safety issues resulting from rumored irresponsible driving speed by a customer in China. Whether you agree or not, there seems to be a more coordinated attack on something Tesla does well, which is keeping its drivers and owners safe. One of the highlights of Tesla’s hugely successful adventure in the automotive industry so far has been the company’s ability to ensure the safety of vehicle occupants in the event of an accident, and also to deploy software. and semi-autonomous driving features that aim to improve consumer safety in revolutionary lanes.
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However, that doesn’t always turn out to be what the media want to report. The week before the first quarter earnings call, it was relatively impossible to notice that the tide was turning negative on Tesla’s media coverage. While it’s understandable that a brutal car accident that claimed the lives of two men was covered, it grabbed national headlines and dominated media coverage around the world for several days. Interestingly, I don’t recall such extensive media coverage for the Ford Death Wobble.
Journalists find stories and use them for other types of coverage. It’s derivative cover where readers can see just how creative a writer’s mind is. There are millions of stories that could be written based on the recent auto accident. However, a majority of them were negative, and it doesn’t necessarily boil down to the truth, it boils down to perception. Unfortunately, I don’t believe most of the journalistic coverage was completely accurate simply because of the poorly understood capabilities of autopilot in the real world. I still get questions and comments on a daily basis from those I talk to who think Tesla are capable of driving themselves. What’s even more frustrating is that sometimes owners and drivers, who should have the best interests of the business at heart, post content, Tik Toks, and other forms of social media describing that their all-electric car can drive them from point A. to point B while they sit in the backseat and take a nap. This type of content is irresponsible, immoral and wrong. Acting like a Tesla can behave completely just for a few thousand views is a selfish act that puts the hard work of Tesla’s engineers in danger of losing all their work.
This brings me to the unfortunate accident in Texas. We do not yet know what the exact cause of the accident was. We don’t know who was in the driver’s seat, if the AP was tricked, or even if it was on at this point. Most of the evidence would probably indicate that the AP could not be activated due to the lack of road lines, and the rate of displacement is not something AP would let the driver do, to begin with. Eventually we will have all the facts of this story, and we will be able to say precisely who or what was responsible. But at the moment, these things cannot be speculated.
Still, news sources claim that this car was “driverless,” which is a completely absurd tale given that there are many limitations that would require the presence of a driver while the vehicle is in operation. That hasn’t stopped Consumer Reports from pulling together one of the most ridiculously biased tests I have ever come across. I felt like this just proved that Tesla Autopilot would only be fooled under extreme circumstances, by not following the automaker’s instructions and trying to thwart one of the most successful semi-autonomous driving programs in the world. world.
The obvious effort to derail Tesla’s momentum is noted by fans, followers and company owners. For the life of me, I can’t understand why. In my opinion, for years MSM have been promoting global climate change, using it as a way to scare people into a change. While I think fear isn’t always the best way to get a large group of people to do something, I think climate change is a real problem and will affect people for generations to come. With cars being such a big contributor to the problem, you would think the media, the same interests that have preached the dangers of carbon emissions for years, would report on automakers working on the auto industry’s transition to electrification. , would get a “good shake”. It just hasn’t happened.
Believe me, I criticize Tesla when it’s warranted. I have personally encountered issues with their customer service and have been very critical of their handling of other issues with their vehicles. I have spoken many times about the LR RWD Model Y and the shame for Tesla for keeping those preorders in limbo for years. However, there are statistics that prove the ultimate task of FSD and AP: to make driving safer. More recently, the Q1 2021 Safety Report showed that the autopilot was almost 10 times safer than a human driver. You don’t see the mainstream media covering this, but you will notice that blogging and automotive media take full advantage of the stats, proving that Tesla’s mission becomes more real with every mile you drive.
With the momentum Tesla displayed with the Production and Shipments report, I think a lot of people were expecting a big financial quarter. The timing of the negative news is telling, and it appears to be a coordinated effort to perhaps slow Tesla’s momentum in the future. Tesla is aiming for another straight quarter, bringing the total to seven in a row if things go well on Monday. If Wall Street recognizes the impressive tone of this feat, we’ll see. However, media coverage has done everything possible to reduce Tesla’s chances of a good quarter, but with developments, demand, and shipments all healthy, there doesn’t seem to be much chance of that happening. .
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