Tesla shares bounce as Musk risk seen as overblown

Alfred Osborne
September 14, 2018

The electric-car maker will ditch two of seven colours offered to buyers on Wednesday to simplify manufacturing, Musk, Tesla's chief executive officer, said in a tweet.

Tesla's turbulent stock price - and even more volatile CEO - steal the headlines. The electric auto manufacturer has warned customers that they have a small window of opportunity to order the colors before its too late.

"Since I joined Tesla on August 6th, the level of public attention placed on the company, as well as the pace within the company, have exceeded my expectations", said a statement from Morton released by the company in a filing with the Securities and Exchange Commission.

Tesla was already under pressure before the note. That strategy paid off as Tesla built a huge lead in the electric vehicle race, although that position is under assault from intense competition by rival manufacturers such as Mercedes-Benz and Ford.

Musk is also in charge of SpaceX, the company with a contract to ensure the smooth operation of the International Space Station - and wants to build a global space-based Internet along with a human settlement on Mars. However, the firm downgraded its Tesla rating to neutral from buy, noting that some of Musk's recent behavior could weaken consumer confidence in the brand.

New Super Mario Bros U To Get Deluxe Switch Version
Thankfully, cloud saves will be coming to the console in five days via Nintendo Switch Online , but there are some major caveats. Nintendo Entertainment System - Nintendo Switch Online also uses the Save Data Cloud, so the same applies.

US says transfer from FEMA funds won’t harm hurricane relief
Since he took control of FEMA past year , Long has allegedly been using a government driver to take him home. It is true that Congress sets funding levels for all parts of government through the appropriations process.

High Definition Video of Hurricane Florence From ISS
The evacuation is said to affect one out of every five South Carolinians, representing around a million residents. He encouraged citizens to use the time between now and Thursday to prepare and use common sense in staying safe.

In addition to being a pinch point slowing production, Tesla owners have taken to online forums to cite an unusual number of paint-quality and rust issues with their new Model 3s.

Sacconaghi noted that while the latest sell-off reflects potential risks from lawsuits, Musk's "increasingly erratic" behavior, competition in the electric vehicle (EV) space and high management turnover, "it is unclear to us that any of these are deal breakers for the stock".

Shares have lost 20% over the past month and are down 8% this year.

In July, Musk stated an August goal of producing 6,000 Model 3 cars per week, however the current reality is closer to 3,500, according to estimates by Bloomberg. A week later, shares plunged again after Musk said the go-private plan was abandoned, and they fell one more time last Friday when Musk was caught smoking marijuana on camera during an interview.

"They can expect, I think, a substantial amount of people pulling their reservations", Acevedo said.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER