Tesla’s future is riding on Elon Musk believers

Tesla’s future is riding on Elon Musk believers

Elon Musk Boring Company

Tesla had a tough first quarter, reporting a drop in revenue during a Tuesday earnings call.

But Tesla’s woes are unlikely to deter its fervent fans from continuing to support the company.

Tesla customers are among the strongest brand loyalists out there.

Tesla had a rough Tuesday.

The company reported a drop in revenue during its first-quarter earnings call, falling short of expectations and ushering in a dimmer outlook for the electric vehicle manufacturer.

But luckily for Tesla, the company’s fans are a fervent bunch, unlikely to be deterred by one bad quarter.

During the Tuesday earnings call, Tesla reported a net income of $1.1 billion from January to March, which is down about 55% from last year. Stock in the company climbed more than 10% as a result of volatile late trading shortly after the call.

“This ultimately comes down to: Do you believe?” Gene Munster, a managing partner at investment company Deepwater Asset Management, told CNBC shortly after the earnings call, describing Tesla’s dilemma.

“If you believe the future is going to be hybrid cars and it’s going to take a long time — 20 years — to get to full electrification, the stock’s not going anywhere,” Munster said Tuesday.

Tesla CEO Elon Musk, for his part, hand-waved concerns about the low numbers during the call, instead doubling down on vague promises of the future of artificial intelligence at the company and a fully autonomous car.

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