Too much pot.
A guy who is dumb enough to go viral of himself smoking dope suggests that he is possibly not a responsible CEO.
2
Stop complaining! I owned GE!
Gotta protect the short sellers. People unlike farmers who use short sales to hedge against variations on harvest values, the s-sellerers play with a stock like it is monopoly and bet and encourage failure. It is rich peoples betting pastime. They should go to their nearest Indian gaming cansino and stay away from capital markets. I bet Trump's buddies had big bets on failure of an American green energy company that is changing the world.
So which was more damaging to Tesla shareholders? Elon Musk's Tweet about taking the company private, or the SEC's suit to remove Elon Musk from the company, especially if they win?
Musk is bipolar, and he is in the process of imploding.
Tesla will join the ranks of the DeLorean and Edsel in the dustbin of automobile history.
Those who buy his cars are essentially buying today's Trabant, a relic of the DDR's illustrious history—or East Germany.
See https://naegeleblog.wordpress.com/2015/11/30/a-34-trillion-swindle-the-s... ("Is The End Near For Elon Musk And Tesla?")
3
IronMan needs a mental health break. There have got to be some good, committed top level managers who can keep this venture moving in the correct direction until he can clear his head and get his perspective straight. His investors see the value in his ventures outside of his personal mojo. Someone else can get the assembly line clicking. Fix the bugs. The money side will be ok. Just keep the company on target. Elon, we love ya, but get some sleep. Go hike the Appalachian Trail. Go find your Pepper Potts. Take up painting or yoga or something. See you back in a year.
1
another independent car company being harassed by the government to protect the big 3 but with Trump Id say Big Oil ... Tucker and DeLorean
Now we find out if it's a real company.
3
The Trump team wants to wipe out a y industry that do ed s not pollute. No there is a real response to American manufacturing. Those cars are made in the US by hard working Americans. Oh, forgot to say California bay area. One of the most expensive cost of living blue collar areas in the world. So much for MAGA.
1
I rode in my brother's Tesla a couple days ago, and the cars themselves are not the supernatural phenomena they are made out to be. Maybe Musk is not a supernatural phenomenon either.
3
@Jonathan It's possible to drive a Tesla car in an uninspiring way. Did your brother perhaps have "chill" mode turned on?
So to "protect" short sellers the CEO of Tesla should be removed? Despite the fact that an overwhelming majority of shareholders support him and there is a general consensus that his removal could cause the collapse of a fifty billion dollar market cap enterprise? Explain to me how this is meant to help shareholders? And how is it that a decision of this magnitude is to be taken by a small group of bureaucrats in Washington? I thought that the message from Trump was deregulation at all costs
3
It doesn't matter if the shareholders want to keep him because Musk didn't lie to JUST them. He lied to the market and investors who acted on that information. If the only thing that mattered was the effect on current shareholders, then "pump and dump" schemes would be perfectly acceptable because they benefit current shareholders, at the expense of future shareholders.
I think it ironic that short sellers need to be protected by anyone. The very nature of the play is to spread rumors to make the price go down. Anyone ever go to the movies? The second irony is the SEC itself, one of the most ineffective regulatory bodies in government.
1
Put short sellers aside. What about the people who bought the stock after Musk's announcement, only to lose money when the truth came out and the stock declined?
2
In a nation thirsting for some semblance of justice, let's hope that Elon Musk doesn't end up being above the law, too, even though his sheer obnoxiousness does put him in a league with Donald Trump.
3
Hmm... Musk was going to have to pay $420 a share, but if he had a secret financial backer, that backer could be buying up shares discreetly right now for 25% or 30% less. Might end up with a bigger stake to launch the privatization bid from, and get a bunch of the company at a bargain, comparitively. Gordon Gekko would be proud. Musk is often acknowledged to be a genius (just an ordinary genius, not a "really smart genius" like some other prominent billionaires, of course) so maybe there's a method to his madness..? If Musk drank a half-dozen cocktails every evening, nobody would drop the share price even $1, but show up online with a toke, and save your secret investors a few hundred million. The SEC takes a predictable step, and save your secret backers another few billion... "crazy", like a fox, maybe.
1
I think Elon is an exceptional human. What he has accomplished thus far makes even the productive amongst us look like slackers. That said this ruling is not about him. It's about the rule of the law. His tweet was meant to move markets by hurting short sellers and against the law. The SEC needs to set an example here. Its truly unfortunate.
1
Here's how this plays out:
Tonight, Hannity blames this on the Kenyan and the commie moles he embedded in the SEC. Going after Musk means you hate capitalism, blah blah blah.
After the repeat for the West Coast, you know who uncercuts the SEC's move with a series of 3 a.m. tweets, then doubles down that evening with an exclusive on Jeanine Pirro's Fox News show. (Poor Jeanine, relegated to the No Blonde Zone!)
And first thing Monday morning, TSA opens at $320.
2
I think that SpaceX is going to be generally ok, but that Tesla Motors is generally on a downward spiral. Most of Elon's wealth was cought up in Tesla, and he's recently divulged a lot of money to use for presumably SpaceX.
This is generally a sinking ship. It is doubtful if spaceX will accomplish anything. Elon stretched way too far, tried to many things, and ultimately he's going to crach and burn along with his company stocks.
Mentally, he's gone off the deep end. He's not of sound mind for running these companies. He'll be replaced.
He'll take his few billions, recede, and try something else someday. But for now, he has failed.
5
@DudeNumber42 It is doubtful if spaceX will accomplish anything
Are you serious? They have already crushed the price to launch satellites and supply the ISS and will likely replace Russia as our transportation service in space.
1
Musk has already made it clear that he wants to take Tesla private. His board rejected that and now he's doing everything he can to convince them to quit the company or watch as their stocks tank. Once they're gone, he'll get exactly what he wants. You think it's a coincidence that shortly after he was publicly chastised by his board about going private he was smoking blunts on Rogan and tweeting crazy rants?
Tesla without Musk is just another Volt. Either he gets full control of the company or he starts their competitor and they lose everything a few years down the line.
Perhaps the SEC is trying to undo the damage caused by it sleeping through Bernie Madoff's monster Ponzi scheme.
Regardless of this seeming misstep on the part of Mr. Musk, the movement toward electric cars is gaining wattage with every passing year.
Musk and Tesla are in a similar position that Chrysler was in when it first introduced the mini-van or Ford when it introduced the Mustang. 400,000 back orders are proof that Tesla is definitely selling what a huge section of the car buying public wants.
This coming Monday I'm selling most of my portfolio and buy Tesla. Like Amazon, its heading for the roof.
6
Don’t get me wrong, I want electric vehicles. But being an officer of a publicly traded company comes responsibility.
People’s pension funds, 401k’s, etc. are invested in this stock. Their retirements and savings are dependent on this. He can’t be rambling off like this.
2
I can't wait for self driving electric vehicles. It's the future. I believe in Elon Musk and Tesla.
6
Has anyone pointed out that Musk's ill considered statement raised the share price temporarily, but the move by the SEC, leading with the possible penalty-- rarely applied, and then only in cases of extreme and long term outright criminal behavior-- dropped the Tesla share price by 14%. Which Tesla investors is the SEC protecting? Those Wall Street creatures shorting the stock? Or people like myself who want to see electric cars succeed and have invested our money long term to support that happening.
Musk needs a nap, and maybe a big fine; and we need an SEC that actually does something useful.
17
The job of the SEC is to protect all investors, not just those who were shareholders at the moment Musk's statement is made. Those who bought the stock after it jumped in price lost money when the shares declined after the truth came out. True, investors are having to sort through rumors all the time, but the CEO of a public company is not supposed to be adding to the morass.
Musk lied to investors and should be punished accordingly.
1
Tesla was not the first electric vehicle and it is not the only electric vehicle on the market. So what's with all the hero worship? Smart enough to create a brand with a lot of glam, but the company is in serious trouble by any standard.
6
@tony do you own a Tesla? Have you driven a Tesla?
Investors who short shares of public companies are not trifles. They are serious private and institutional investors where pursuit of profit has optimal results when the public company they short is put out of business. Make no mistake; the closure of Tesla is the goal. If you hear "Three cheers for the SEC." or "Hooray" for the SEC.", or its inverse "Bad Tesla." you are listening to a short seller. they will stop at nothing to put Tesla OOB. Fine people. Fine system. Fine SEC. Ugh!
6
Short sellers identify companies that they believe to be over-valued. They are not evil and what they do is not illegal. Unlike what Musk did.
2
Several decades ago, Harris Bank in Chicago ran a series of advertisements that featured pithy phrases. The following one seems to apply to Elon Musk:
"The unshakeable belief that you can do absolutely anything is a solid cornerstone on which to build disasters!"
It seems that Musk is running high profile businesses, does not delegate responsibility to others, and is making fatigue driven mistakes. He is the source and potential solution to his and Tesla's problems.
6
After watching or hearing about Musk's behavior the last few months, I'm reminded of the following phrase from a poem by Henry Wadsworth Longfellow (there's also a Star Trek episode of the same title, for the Tesla/Space X fans):
"Whom the gods would destroy they first make mad."
4
The day of reckoning for Tesla was long overdue given the extreme dependence of its stock price on a brilliant but erratic CEO who had Wall Street's attention and admiration. However, the moment Musk let his ego get ahead of the business goals, a downfall was imminent.
Tesla's board has played a large negative role in all this. Not only do they not have the independence to control a CEO who likes to go rogue on social media, they made an already bad incentive problem worse by tying his future compensation to realizations of a market value when it was already amply clear that a large portion of Tesla's valuation had no connection with profitability or cash flow. They implicitly enabled Musk to say whatever he needed to in order to position the stock price. So Musk, instead of focusing on cost, market share and profitabiity instead became little more than a wall street trader with eyes on nothing but stock price.
However, the downfall of Tesla stock has just started. Their cost of capital just went up significantly as a result of the SEC announcement. Their ability to raise money in the debt markets has been dealt a severe blow. Given their inability to maintain the necessary cash flow to pay off debt interest and upcoming convertible debt that is shortly due, they are staring down a hole deeper than the Grand Canyon. They can raise money by diluting equity, but at the rate at which Musk is imploding will anyone buy ?
7
I could care less about Musk and his car (we don't see a lot of them in this part of the world) or his "visions" (see even less of them).
Doesn't the company have a board of directors who will at least take away his pot & cell phone? Ah, the BoD is made up family.
2
Teslas don't have tanks. There is nothing to share.
1
Tesla has been bleeding quarter after quarter for years. It is grotesquely overvalued when using even the most liberal metrics. The company consistently needs to inject cash for operations. Delays, worker safety and Elon himself have all contributed to this mess. He was caught lying by the SEC. This isn't political; Elon's problems were there while Obama was in office. If he pulled the same stunt during Obama's presidency, the SEC would still slap Elon with fines.
7
To those NY Times readers who are commenting "Elon Musk isn't fit to be a CEO", my question is, "have you thought this through?" Let's see, so you'd rather have Musk be like the other major automaker CEOs, who put profit above all else, who fight safety and efficiency standards tooth and nail, and whose biggest goal every year (besides their own compensation package) is to have a good showing at the Toronto Auto Show. If that's your idea of a proper CEO, I'll take Musk with his vision, leadership, and, yes, his tweets.
19
There is no virtue in lying. But try telling a fanboy that.
4
Musk's behavior was a bit like Trump shooting someone on 5th Avenue. If you're a man of wealth and privilege the rules couldn't possible apply. Especially if you were just joking and didn't really mean it. What Musk did was a clear and serious violation of securities law. His defense? He's so smart he obviously couldn't do something so stupid.
10
I own Tesla stock and will ride it into the ground if need be. I don't do this because I'm an idiot. I do it because I believe corporations can and should add value to society beyond simply financial value. Tesla is important because (1) it's one of the few high profile companies to call out the urgency of our climate situation, (2) it induces people to change lifestyle in an incredibly compelling way, (3) it presents Millennials with hope - something our disgusting politics fails at miserably, (4) it gives the finger to those who profit incredibly from the status quo. Live or die, Tesla has made a huge statement. One that I hope inspires the next disruptive, radical visionary to take a chance.
34
Musk: (Makes stupid mistake that hurts investors)
SEC: Bad! Bad! We'll show you! We'll REALLY hurt your investors!
8
Any Elon Musk "fan" who thinks he's fit to run a public company is not credible. He should have been fired by his Board the moment he diverted resources to the Thai cave collapse and then accused the lead diver of being a paedophile. Nevermind sharing false information about taking Tesla private. He shouldn't be CEO. He shouldn't be on the Board. He shouldn't be an employee. He should be in counseling.
20
Musk should have been fired a couple of years ago, when he cancelled someone’s Tesla order in a fit of pique. That’s not acceptable behavior, and I sold all my stock because of it.
6
Was bound to happen........best short in the market right now.
3
The 50,000 purchasers of the Model 3 this quarter are thrilled with their cars. In the end, that's all that matters. Can they make the cars, can they sell them at a profit, and are consumers happy with the product? In the meantime, the oil/gas/legacy auto makers tremble at the disruption about to whipsaw their industries. And short sellers hope to get rich off of all of it. Folks should just settle down and buy the cars!
15
@James Matthews
The legacy auto makers -- you know, the guys who actually invented the assembly line a hundred years ago -- are hardly "trembling" at Tesla. They are learning from Tesla's mistakes and are playing the tortoise to Elon's hare, as witness Benz' recently announced EQC SUV coming here in 2020. And it likely won't be more expensive than its Tesla competitor, for once.
In any case, these are not cars for the rest of us. Tesla has yet to demonstrate that they can turn out an affordable vehicle sans tons of government incentive subsidies. None of those Model 3s coming off the line are anywhere near the $35,000 Musk promised years ago.
7
They haven't been able to sell them at a profit yet...
1
Several Wall-street analysts are saying SELL! The 52 week high for Tesla shares was about $443.00 and change, now it is dropping fast and may go to about one hundred buck$ per share! Our mutual funds have significant shares of Tesla, but that’s better than owning the stock outright...
1
The Trump administration seeks tax advantages for the fossil fuel industry (particularly "beautiful, clean coal"), seeks to eliminate tax incentives for renewable energy like wind and solar, eliminated science from the EPA, and is now taking virtually unprecedented action to crush the best electric car company the world has ever seen. It has eliminated science from the EPA.
The gall, the abuse of power within this administration knows no bounds.
7
Musk's behavior can not be excused, no matter is in the White House. The CEO of a public company has responsibilities to current and potential stakeholders.
4
And the Republican Party which passes Trump's legislation without question is where Musk's political donations go. All he does is talk the talk
For awhile I was surprised just how deeply invested many people are in the notion of Elon Musk as Übermensch. I came to recognize it as a symptom of just how desperate we are -- I include myself -- to be part of an aspiration to something great. It's a statement about the smallness of the time we live in.
I thank Musk for launching the electric car revolution, and appreciate him every time I get behind the wheel of my Chevy Volt, which doubtless exists only because of him. I root for his energy storage business, operating quietly in the desert, far away from media scrutiny (making it even harder to tell what's real and what isn't).
But misleading investors about events that powerfully affect the value of your stock is NOT a victimless crime. It costs people money, and it damages the markets as a whole. It's not too much to ask Elon Musk to follow the laws we've created through hard-won experience to protect every one of us.
23
Sadly, it is unlikely Tesla will survive as a leader without Elon Musk. The company, like so many other businesses pushing the leading edge, need a visionary who can execute, not just think. Apple without Steve Jobs? Microsoft without Bill Gates? Ford Motor Company without Ford?
However, with that vision comes personalities that can be demanding, grating and not within the norms. They are not necessarily nice people nor patient. Plus, these leaders tend to have the inability to delegate, so personal is their idea being brought to fruition. It is the rare leader in these times who can cede control while innovating beyond what others can even contemplate.
Elon Musk fits the mold perfectly. Tesla may survive but it is more likely to fall into standard corporate practices and bureaucracy until another true leader appears to take the reins and charge ahead with abandon. Again, think Apple. I truly understand why Musk contemplated taking Tesla private. He's probably tortured over having to listen to stockholders who opine but have no vision other than $$$$ in their heads.
What I find amusing is the tempest over Musk's use of pot and the immediate reaction on the Street. Clearly, Wall Street does not consider pot to be harmless as politicians forge ahead with legalization for profits and turn a blind eye to the investor's negative reactions heaped upon Elon Musk.
5
@ArtM Apple was around while Jobs was gone, and flourished again when he returned. I think Musk needs a break, and he'll come back better and the company will be better for it.
1
Waiting for the SEC to bring charges against Trump. He's done far worse.
But the SEC won't investigate Trump, but only someone Trump doesn't like. Coincidence?
7
We're in trouble if Trump's behavior sets the line between what is acceptable and unacceptable.
But, the reason that the SEC won't investigate Trump is that he has usually been quite careful to operate his companies as private entities, beyond the remit of the SEC.
3
This is just plain wrong.
Yes, Musk violated some securities laws and there should be consequences for that.
But he has done so many wonderful things, in such a socially conscious way.
Wall Street and business are laden with CEO's who have done far more than Musk ever did, and received as a consequence either nothing or trivial fines that were written off as business expenses.
It would be criminal to prevent this man from running his companies and making his contributions -- which would not have occurred and will not occur without him -- because of some green eyeshade technicality.
11
Musk's lies about financing were no mere technicality to investors who lost money when they relied on the information to make decisions.
6
No one is above the law..no matter how much you like him.
2
Elon has defied laws of gravity with his visionary space program.
Unfortunately, gravity of securities laws may ground him for good.
I admire this man and hope he is not the next DeLorean.
America will be poorer without him.
8
The Federal Government tends to handle these situations as domestic diplomacy; that is to say: maneuver symbolically as they would with, say, the Europeans or the Chinese. This means that will respond to the 'aggregate Mr. Musk', who is engaged in many business ventures besides Tesla (such as the defense related SpaceX). They will also use whatever arrows they have in their quiver that they think might be appropriate.
This situation reminds me of the late Mr. Howard Hughes, who also had many defense related businesses such as Hughes Aircraft, Hughes Missile, Hughes Electronics and so on. In 1953, during a dispute with the U.S. Department of Defense over military contracts, Hughes shifted all of his Hughes Aircraft (majority) stock to a bunch of medical doctors. Today we know that entity as the Howard Hughes Medical Institute in Chevy Chase, MD. It is interesting to note that HHMI does not accept Federal funding.
Unlike Mr. Hughes, Mr. Musk does hold a majority interest in Tesla Motors.
3
Musk should have been more fulsome in his praise of Failed 45. This doesn't happen to those that have taken The Oath of Orange.
8
Studebaker.
Packard.
Hudson.
DeSoto.
DeLorean.
Bricklin.
Edsel.
Tesla??
8
@MIKEinNYC
Nope.
3
Tesla = Ponzi squeme
7
This is exactly what Elon Musk wanted. He’s played the game very well to create cheaper stock so he can buy it back and get out of any public accountability. The SEC just did him an enormous favor and he’s loving it. The April Fools day joke he played (joking he was bankrupt) was planned as was the smoking pot stunt...they both lowered stock so he could buy back.
Slick move. Questionable morality but effective.
4
Stock down 12% in one day.
You would be a fool not to buy it.
3
@gene
You're totally right! Buying the common stock of a nearly insolvent, cash-poor company at 100 times forward earnings is pure genius!
4
@gene, You'd be a fool to buy. 12% down is still vastly overvalued, and it's unlikely it will go back to where it was in the forseeable future.
3
Yea, ha, you first....
This stock is finished.....next stop 175
1
Why you would buy cash eating and cash starved Tesla at 100 times earnings when you can buy a still fast growing cash machine like Apple at 17x?
15
Big Oil is behind all of this.
The not only want to insure Tesla is driven into the ground, but they won't stop until all alternatives to the stranglehold they have held on our energy sources for over one hundred years is further perpetuated.
I suggest a nationwide "gasoline strike" one day per month. Don't purchase gas for that day. I don't want to hear about how that hurts the guy at any filling station. Most stations now are corporate owned. A few months of this and if successful it will corrupt their insane profits so badly they will, at least, start thinking of changing.
In the past mankind was NEVER reluctant to embrace new, technology at the expense of rendering older technology obsolete. What he have now is akin to being held hostage to and beholden to old technology. Don't think there's nothing we can do about this.
8
@matty
It doesn't need big oil to run Tesla into the ground. Elon Musk does that himself.
Not to mention that there is nothing innovative with Tesla. It's just an over hyped overpriced car which has a lot of production issues.
4
@Two in Memphis
An over-hyped car that doesn't run on petroleum.
100 years ago, the Ford Model T was also "over-hyped." We almost know the end of that story.
@matty, when the Ford Model T came out a car was no longer over-hyped. Remember that the Model T was a mass market car, not the first automobile, which was invented in Germany btw.
1
Very simple: Would any financial advisor recommend to a very close and dearly loved family member that they invest in Tesla stock? Many people including myself see the Tesla business model (that is the Musk model) as a paper empire that is not sustainable. The idea that E.M. is a visionary genius who should be exempt from the same standards as any other “leader in place” who is doing great harm to his brainchild company is simply not seeing the whole. No one really wants to see Tesla go away.
13
@Mark Smith
The oilmen certainly do.
5
This sounds more like billionaire envy and a political hit, than a penalty from the SEC.
7
@merchantofchaos
Short of politics, it definitely seems like the result of some sort of behind the scenes corporate power play. Tesla has been in the cross hairs for some time and they were simply waiting for the right move / moment.
10
@merchantofchaos, the reality that is so hard to swallow for Musk's fan base is that this is not a result of a 'political hit' or 'envy', but the simple, expected result when a huge egomaniac with money believes that rules and laws don't apply to him. The old adage 'you can put lipstick on a pig but after all it's still a pig' is still valid.
However, if it helps you to sleep better at night, we can for a moment pretend it's a political hit. Or an attempt by aliens to prevent Musk from landing on Mars.
5
I always thought Musk was a bit of a narcissist, and when he tweeted that I was knew it was really really bad. Now he's going to pay for his mistake, and those short sellers are going to win. Guess he isnt such a super-genius after all.
8
He's been kiting the stock for decades. Finally, the SEC is catching up with him.
A realistic valuation of Tesla might be $10 per share. Or zero, if it goes bankrupt, as is likely.
6
Your write "Some worried that financial regulators put in place by President Trump would take a softer line ..." Elon Musk is a pro-solar anti-carbon guy and, therefor, fair game under Trump.
38
You mentioned several possible reasons for the SEC action yesterday. It would not surprise me in the least if the reason for them moving with such speed and asking for such a severe punishment was that he simply decided not to negotiate with them. He clearly was breaking laws with his announcement, whether deliberate or not. And simply refusing to negotiate any punishment likely just demonstrated his arrogance, which they decided to stamp down. The SEC can always negotiate some other punishment, but now Musk is on the defensive, and stockholders may not be as forgiving as when he misses forecast after forecast.
11
The writer of this article keeps saying Elon Musk is a cautionary tale of a superstar CEO. The writer mentions that the company is wildly overvalued. The writer doesn't seem to understand that TESLA has been punching WAY above it's weight class precisely BECAUSE of Elon Musk. He IS a force in his own right. He created 3 huge forward looking companies, in a world where a person should be so lucky to create even one in their lifetimes. Mr. Musk has been rumored to be depressed and morose about what's been happening with his TESLA. The guy needs understanding, and folks should cut him slack. What he needs to understand though is that when a person gets SO HIGH up the stairway of accomplishment, like he has, all future steps put him not in standing with other mortals, but with the Gods themselves. He is trying to save the world, and advance humanity to the planets, (Mars). And he is trying to do it and will it into existence HIMSELF! In short, he is ascending stairs that no mortal can truly succeed at. A single mortal can not save the World or take us to the planets. Failure is virtually assured for mere mortals at such lofty heights. Thus he should only compare himself to other mere mortals lest he find himself always frustrated, because HE WILL LOSE if comparing himself to the feats of Gods. My advice would be: Take a few steps back Mr. Musk... and thrive.
18
@No big deal, and as to your comment that the author doesn't know that Tesla has been "punching way above it's weight", all this shows is that you have no clue how a business is valuated (but don't worry, most people haven't, so you're not alone).
Which is not by 'potential' or the size of it's CEO's fan base but by hard assets and IP.
For those in the know that pay attention there are many signs suggesting that Tesla is way overvalued, a bubble that will burst eventually, as with so many other overvalued businesses in our history. I'm pretty sure they all had a guy from somewhere believeing the company is worth a lot because they are "punching above their weight".
8
@Wurzelsepp Amazon lost money for years: now look at it. GPS-based technologies seemed like a loser for years- now look. TESLA is best viewed as a long bet. That their innovations embodied in their cars could lead them to dominate transportation and battery storage industries for a long time. It's almost like investing in a company like Ford when everyone was still driving horse and buggy and there weren't gas stations everywhere: it takes a big leap of the imagination. So I think there were very good reasons for TESLAs high valuation despite the fact that it needed so much cash, just as for AMAZON. But at a certain point they have to cross a tipping point into viable profitability. Musk is complaining that investors are not keeping the faith and recognizing that it takes significant time to cross that tipping point-- but perhaps he over-promised and hence the loss of confidence. But I believe that the real long-term risk to TESLA is that most of their innovations can and will be copied. It will be hard for them to be profitable once China comes out with a close copy of the Tesla 3 at $10k cheaper per unit. Those Chinese companies will have the additional advantage of not being saddled with debt nor having to invest in all the initial R&D that TESLA did for them. It is easier to monopolize social media or online shopping, where market share creates long-term advantage, than the transportation sector.
3
"The guy needs understanding, and folks should cut him slack."
If you're an investor who lost money because of Musk's lies, you're probably not going to be so understanding of his narcissistic quicks ... nor should you be. Musk's lies weren't just a moral failing, they were illegal.
1