Tesla’s Daughter Calls Company a ‘Ponzi Scheme’ During Twitch Stream

In a recent Twitch stream, Vivian Jenna Wilson, the estranged daughter of Tesla Inc. TSLA CEO Elon Musk, generated controversy by describing Tesla’s business model as a ‘Ponzi scheme.’

Details of the Controversial Statement

During a live Twitch discussion with prominent political commentator Hasan Piker, Wilson critiqued her father’s business practices. She cited Tesla’s high price-to-earnings (P/E) ratio compared to other automotive firms as evidence of her claim.

Wilson stated, “Look up PE ratio and then look at Tesla Stock compared to other car companies. It’s not a car company, it’s a Ponzi scheme,” drawing immediate attention to her remarks.

Response from the Investment Community

Wilson’s declaration has ignited a public debate on social media platform X. Investor and commentator Collin Rugg was quick to criticize Wilson and Piker, claiming they reached this conclusion without substantiating evidence.

Previously, Musk labeled Piker a “fraud” for endorsing the game Assassin’s Creed Shadows, which he criticized. During her Twitch conversation, Wilson also discussed Musk’s purported exaggeration of his gaming skills.

Impact on Tesla’s Stock Performance

This controversy comes amid scrutiny of Tesla’s Stock. Since mid-December, shares have dropped nearly 50%, yet are still viewed as overpriced according to seasoned investor Ross Gerber. Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, does not foresee a rebound in Tesla’s Stock this year.

Analysis from Benzinga in early March indicated that Tesla’s P/E ratio stood at 143.62, a striking 12.33x above the industry average. This suggests that the company’s shares are priced at a premium level based on current market sentiment.

Despite ongoing protests against Tesla nationwide, analyst Dan Ives from Wedbush remains optimistic about the company’s future. He anticipates lower delivery numbers for the first quarter but believes this to be a critical moment for Musk to steer the company through its challenges, stating, “This continues to be a moment of truth for Musk to navigate this brand tornado crisis moment and get onto the other side of this dark chapter for Tesla with much better days ahead we see for the story.”

Tesla, recognized for its electric vehicles and autonomous driving capabilities, reported nearly 1.8 million vehicle deliveries in 2024. However, the company’s lofty valuation amidst notable losses is a persistent contention point among investors.

Tesla Stock fell 3.5% to close at $263.55 on Friday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.