Tesla tumbles on fresh concerns around Musk
Brash tycoon opened up about the personal toll he endured in boosting Tesla 3’s production
Tesla shares took a pounding on Friday amid fresh fears about the future of the electric carmaker after a wide-ranging interview with chief executive Elon Musk in The New York Times. In it, he revealed his struggles with exhaustion and a lengthy but unsuccessful effort to find a number two executive.
In closing trade, Tesla shares skidded 8.9 per cent to $305.50 (Dh1,122.10) following the publication of the interview with.
Musk said he has worked marathon hours trying to ensure that deadlines are met, with Tesla ramping up production of its crucial Model 3 sedan. “There were times when I didn’t leave the factory for three or four days,” Musk said.
“This past year has been the most difficult and painful one of my career. It was excruciating.” He also revealed he needed prescription medication to sleep during the latest ordeals.
The brash South Africanborn entrepreneur also sought to explain his tweet earlier this month about taking Tesla private, which has drawn scrutiny from regulators.
He explained that the August 7 tweet claiming assurance that funding for going private was secured was an attempt to be transparent, even though it provoked questions from analysts about whether it violated stock market regulations.
Musk acknowledged that no one read his Twitter post before he sent it, but insisted he did not regret it.
“Why would I?” he said.
The focus factor
Tesla produced slightly more than 100,000 vehicles last year and the company has been struggling to boost production of its Model 3, which is less expensive than its first models and could help expand Tesla’s base.
If delisted, Tesla could operate without requirements for financial reports and other pressures of a publicly traded firm. However, it could also lose visibility and limit its ability to raise capital.
Musk told the Times that board members had not complained to him about his tweet. But the paper said he later told them through a spokesperson that Antonio Gracias, Tesla’s lead independent director, had in fact contacted him to discuss the Twitter post.
Musk added he had agreed not to tweet again about taking the firm private unless he had discussed it with the board.