Tesla's charismatic (?) CEO, Elon Musk, recently delivered a pretty downbeat performance at Tesla’s earnings call. Musk’s misery left the EV world in a state of disarray. Musk, typically known for his unbridled optimism and ambition, was subdued as he delivered bad news.

Tesla's Rollercoaster Ride

In a striking departure from his usual demeanor, Musk didn't hesitate to voice his concerns during the earnings call in a stark contrast to his earlier proclamations of Tesla's "recession-resilience." Despite recording positive revenue growth, the EV maker experienced declines in delivery, production, and average selling prices during the third quarter of 2023. Though the operating profit remains in the black, it has seen a substantial drop since the same period last year.

The Tesla CEO emphasized the pressing need to make Teslas more affordable, relentlessly hammering on the "interest thing" - referring to rising interest rates that have the potential to increase the overall cost of the car.

High-Interest Headaches in Mexico

Even Tesla's expansion into Mexico has been fraught with issues. While Tesla is in the process of "laying the groundwork" for a new factory in Monterrey, Mexico, Musk revealed that they're not ready to go "full tilt" due to, you guessed it, "the high interest rate environment that we're in."

It appears that Musk has developed a certain level of financial PTSD stemming from the 2009 bankruptcies of General Motors and Chrysler, leading him to be more cautious in today's turbulent economic landscape.

The Stock Market Ripple Effect

Tesla's gloomy earnings call reverberated throughout the stock market. The company's stock plummeted by more than 9% before markets closed on October 19th. Notably, other US-based EV players such as Rivian (-5.1%), Lucid (-4.2%), and Fisker (-3.5%) also felt the impact of Tesla's downward trajectory.

The reverberations of Tesla's performance are not confined to the United States. Leading Chinese EV manufacturers like BYD, XPeng, Li Auto, Nio, and Geely saw their stocks drop by 2-9% on the morning of October 20th. This suggests that Tesla's influence extends far beyond American borders, affecting global EV markets.

While Musk’s impact on markets has been debated in the past, in this case there’s no doubt he sent stocks down.

The Enigma That Is Cybertruck

But there is something on the horizon. Tesla will produce around 250,000 Cybertrucks per year by 2025, but the road ahead is far from smooth. Musk described the Cybertruck as a "special product" that's exceptionally challenging to bring to the market, reach volume production, and turn into a profitable venture due to its innovative nature.

Musk's Billion-Dollar Reality Check

Despite the stock slump, Musk is still the world's richest individual, holding a 13% stake in Tesla. Nevertheless, his net worth took a considerable hit, dropping by a staggering $16 billion after the unsettling earnings call. Damn shame.

Tesla's Charging Connector Takes the Lead

On a brighter note for Tesla, its North American Charging System (NACS) connector is gaining traction. Toyota and Lexus are following in the footsteps of other legacy automakers like Ford, GM, Honda, and BMW by adopting Tesla's charging connector. Notably, NACS even received the White House's endorsement as part of the federal government's EV charging expansion plan. These connectors are not only more compact but also twice as powerful as the traditional Combined Charging System (CCS) - a clear win for Tesla in the charging infrastructure arena.

Elon Musk's subdued earnings call may have left some scratching their heads, but it's undeniable that it has sent ripples through Tesla's stock and the broader EV industry. Whatever ever happens, we’re sure Musk will be back to usual, animated self in the near future.