Tesla stocks drop 6 percent after emotional Musk interview

Galtero Lara
Agosto 19, 2018

Last week, he revealed a push to take the company private in an unusual series of tweets that has reportedly prompted an SEC investigation.

"This past year has been the most hard and painful of my career", Musk told the Times, which cited people briefed on the matter as saying Tesla is working to recruit an executive to take some of the heat off of Musk.

He mentioned that he was at work during the entire 24 hours of his birthday this year.

Tesla's board is said to be concerned about Musk's erratic behaviour - prompting executives to launch a search for a number-two who can take pressure off him.

We reached out to Tesla for comment but had not heard back at time of writing. In the interview, Musk said he has been working 120 hours a week as Tesla tries to fix production problems with its much-anticipated Model 3, a vehicle that is intended for the mass market and is critical for the electric auto company's future.

Aug 2: Mr Musk tells Tesla's board he wants to go private at $420 a share.

He elaborated on Monday that he believed Saudi Arabia's PIF, a new shareholder in Tesla, could provide the necessary funding, although sources close to the sovereign wealth fund have played down that prospect.

You can get the idea of the plight of Elon Musk from his statement- "The worst is over from a Tesla operational standpoint". Referring to the short-sellers Musk stated: "They're not dumb guys, but they're not supersmart".

Musk, 47, said that he is suffering the effects of dealing with production deadlines for his Tesla auto and the fallout from a federal investigation.

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Musk has been known to taunt short-sellers, but he seems to be coming around to feeling a level of respect for their effectiveness. Venky Ganesan, investing partner at Menlo Ventures, said in an interview that the cost of capital - the rate of return required by an investor to persuade them to make a given investment - averages 17 percent to 18 percent for private companies compared with 6 percent to 7 percent for public companies. That was followed by accusations that Tesla was spying on other whistleblowers that have legal cases against the company.

Meanwhile, Tesla has come under even more scrutiny after an employee fired from Tesla's Nevada battery factory filed a whistleblower complaint with the US Securities and Exchange Commission, accusing the company of spying on employees and failing to act after learning that a Mexican cartel may be dealing drugs inside the plant, his attorney said on Thursday.

Some of Musk's stress comes from critical short-sellers who are betting against the company's success.

But Erik Gordon, a University of MI business and law professor, said Tesla's board has a fiduciary duty to shareholders to take action. "There's a reason for the word 'stoned.' You just sit there like a stone on weed", he added. Musk stated that he wanted to offer a roughly 20 percent premium over what the stock was trading at, which would have been roughly $419, so he rounded to $420.

"As a result, it was clear to me that the right thing to do was announce my intentions publicly".

Although Musk apologized after both outbursts, they raised questions about his frame of mind.

It looked like business was going to get more normal until the restless entrepreneur blew it all up. "Why would I?" he said, when journalists asked if he rued tweeting his intentions.

His real issue is having a weird way of setting his priorities. He randomly says he's going to save kids trapped in a cave when no one needed his help. In November of a year ago he said Tesla is "going out of business".

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