The share price of the United States based electric car maker Tesla was “too high” in the opinion of the company’s chief executive, Elon Musk, according to a tweet by him on Friday. The comment from Musk led to a sharp drop in the share price of the company which closed 10.3 per cent down.
Since mid-March, there has been a steady rise in the share price of Tesla partially because of the increased confidence of investors that the company is set to bring in a transition to the electric car industry, even though the shares have been quite volatile historically. Currently the market value of Tesla is more than the combined value of General Motors, Ford Motor and Fiat Chrysler. All of the three conventional auto giants manufacture millions of cars a year while Tesla is able to churn out about a few hundreds of thousands every year.
The company reported a small profit for the first quarter which was the third consecutive quarter of profits for the company. Founded by Musk in 2003, Tesla has never made a yearly profit.
Some analysts believe that the comment, which was posted amid a stream of unusual posts, made by Musk was odd considering the fact that he had been very vocal against short sellers who have targeted the company’s stocks because they believed that those were overvalued.
In recent times, Musk has also been vocal against the measures taken by the government to contain the spread of the coronavirus such as lock downs and temporary closure of factories. Lashing out at the stay-at-home orders that have closed Tesla’s Fremont, California, car factory, Musk called the measures “fascist”, while speaking at the company’s conference call with analysts this week to discuss its first-quarter results.
“They’re breaking people’s freedoms in ways that are wrong and are not why people came here or built this country,” he said on the call, adding an expletive.
Last month, Tesla was forced to close down the factory after opposing initially to a local shelter-at-home order. After informing some employees to get ready to rejoin work at the factory this week, the company later went back on the decision. No time frame about the resumption of production at the California factory could be provided by Musk during his call with analysts.
He was “selling almost all physical possessions”, Musk, who is also the chief executive of the space company SpaceX, said and added that he would no longer own a home. He explained that since he was “devoting” himself to Mars and Earth, he did not need cash. Taking up lines form the national anthem, Musk also wrote, “Now give people back their FREEDOM”; quoted the poet Dylan Thomas. He said his baby with the singer and songwriter Claire Boucher, better known as Grimes, is due Monday.
(Source:www.nytimes.com)
Since mid-March, there has been a steady rise in the share price of Tesla partially because of the increased confidence of investors that the company is set to bring in a transition to the electric car industry, even though the shares have been quite volatile historically. Currently the market value of Tesla is more than the combined value of General Motors, Ford Motor and Fiat Chrysler. All of the three conventional auto giants manufacture millions of cars a year while Tesla is able to churn out about a few hundreds of thousands every year.
The company reported a small profit for the first quarter which was the third consecutive quarter of profits for the company. Founded by Musk in 2003, Tesla has never made a yearly profit.
Some analysts believe that the comment, which was posted amid a stream of unusual posts, made by Musk was odd considering the fact that he had been very vocal against short sellers who have targeted the company’s stocks because they believed that those were overvalued.
In recent times, Musk has also been vocal against the measures taken by the government to contain the spread of the coronavirus such as lock downs and temporary closure of factories. Lashing out at the stay-at-home orders that have closed Tesla’s Fremont, California, car factory, Musk called the measures “fascist”, while speaking at the company’s conference call with analysts this week to discuss its first-quarter results.
“They’re breaking people’s freedoms in ways that are wrong and are not why people came here or built this country,” he said on the call, adding an expletive.
Last month, Tesla was forced to close down the factory after opposing initially to a local shelter-at-home order. After informing some employees to get ready to rejoin work at the factory this week, the company later went back on the decision. No time frame about the resumption of production at the California factory could be provided by Musk during his call with analysts.
He was “selling almost all physical possessions”, Musk, who is also the chief executive of the space company SpaceX, said and added that he would no longer own a home. He explained that since he was “devoting” himself to Mars and Earth, he did not need cash. Taking up lines form the national anthem, Musk also wrote, “Now give people back their FREEDOM”; quoted the poet Dylan Thomas. He said his baby with the singer and songwriter Claire Boucher, better known as Grimes, is due Monday.
(Source:www.nytimes.com)
