SAN FRANCISCO – Tesla chief executive Elon Musk told employees that they should not be “bothered by stock market craziness”, after the company’s shares fell nearly 70 per cent this year on jitters over softening demand for electric vehicles (EVs) and Mr Musk’s distraction with running Twitter.

In an e-mail sent to staff on Wednesday and reviewed by Reuters, Mr Musk said he believes that in the long term, Tesla will be the most valuable company on earth.

He also urged employees to ramp up deliveries at the end of this quarter, after the automaker offered discounts on its vehicles in the United States and China.

“Please go all out for the next few days and volunteer to help deliver if at all possible. It will make a real difference,” he said in the e-mail.

Analysts expect the company to deliver 442,452 vehicles in the fourth quarter, according to Refinitiv data.

Tesla’s plummeting share price has hurt the value of shares owned by its employees. The company has offered stock compensation for most employees, including factory workers.

Its shares rebounded on Wednesday, following an 11 per cent slump in the previous session on a Reuters report that the automaker planned to run a reduced production schedule in January at its Shanghai plant. The news sparked worries of a drop in demand in China, the world’s biggest car market.

“By the way, don’t be too bothered by stock market craziness. As we demonstrate continued excellent performance, the market will recognise that,” Mr Musk said.

“Long term, I believe very much that Tesla will be the most valuable company on earth!”

Morgan Stanley analysts have cut their price target on the stock to US$250 from US$330, saying that the last two years of demand exceeding supply will be “substantially inverted to supply exceeding demand” in 2023.

REUTERS