Musk gloats as he tops Toyota
● Tesla founder Elon Musk this week mocked securities regulators and short sellers in a series of tweets as the tech entrepreneur celebrated his firm’s rise as the world’s most valuable carmaker.
The taunts came as shares in the electric carmaker revved up on the news that it had produced about 82,000 vehicles and delivered about 90,650 in the recently ended quarter despite production being disrupted because of the coronavirus epidemic.
Tesla shares finished trading on Thursday up nearly 8%, meaning investors who bet on the stock tumbling by “shorting” shares had money-losing positions.
The California firm’s market capitalisation jumped to about $224bn (R3.8-trillion) as it raced ahead of Toyota to become the most valuable car firm. “Tesla will make fabulous short shorts in radiant red satin with gold trim,” Musk tweeted.
“Will send some to the Shortseller Enrichment
Commission to comfort them.”
The reference was evidently a play on the name of the Securities & Exchange Commission, which Musk has clashed with in the past.
“SEC, three letter acronym, middle word is Elon’s,” Musk said in a separate tweet.
Musk is seen as a visionary and inventive boss but is also highly unpredictable, especially on Twitter, where he often communicates in defiance of rules imposed on executives of publicly traded companies.
Fraud charges stemming from a Musk tweet once cost him and the company $20m and implementation of a requirement that his social media use be supervised by Tesla.
Tesla’s rise came as Detroit stalwarts General Motors and Fiat Chrysler reported sagging sales.
The company still sells only a fraction of the number of cars of its rivals, yet has captivated investors’ imaginations as a bet on the future under Musk, who has challenged conventional wisdom on CEO comportment while trying to shift the industry towards electric cars.