MUSK CRIES, TESLA STOCK TAKES A DIVE
CEO calls this year ‘excruciating,’ says he wasn’t on weed while tweeting about taking Tesla private
“I thought the worst of it was over — I thought it was. The worst is over from a Tesla operational standpoint. But from a personal pain standpoint, the worst is yet to come.”
— Elon Musk, Tesla CEO and founder of the Boring Company
Are Tesla investors concerned about CEO Elon Musk’s “stability”?
That question reverberated Friday as the electric-car maker’s stock price fell nearly 9 percent after an interview in which Musk cried and bemoaned his “excruciating” year.
In the interview with The New York Times, published late Thursday, Musk sounded more like a man on his last lap than the visionary leader of one of the most iconic companies in business today. Even for a man who compulsively overshares — about his relationships, his challenges, his opinions of others — the content of the interview was remarkable.
“This past year has been the most difficult and painful year of my career. It was excruciating,” Musk said, adding that, among other things, he nearly missed serving as best man at his brother Kimbal’s wedding because Tesla was feverishly trying to meet production targets for its new Model 3 sedan.
Musk continued, “I thought the worst of it was over — I thought it was. The worst is over from a Tesla operational standpoint. But from a personal pain standpoint, the worst is yet to come.”
Investors reacted negatively to Musk’s confessional, in which the Times said he cried at some points and laughed at others, by sending Tesla shares down to as low as $305.50. It was the lowest price for Tesla’s stock since the shares dipped to $293 on Aug. 1.
Gene Munster, managing partner with Loup Ventures, said the content of Musk’s interview provides some insight into “the mental toll of building multiple businesses that fundamentally change the world.” Munster said that
After Musk gives the New York Times an emotional interview, one expert says investors should be worried about the CEO’s stability. based on the interview, it should come as no surprise that investors would be concerned about Musk’s “stability.”
“It could be a turning point for Musk to get some help and help himself,” Munster said, “which will be a net positive to the companies he’s building.”
Musk’s interview came as he is dealing with possibly the biggest gamble in Tesla’s history: his surprise announcement that he wants to take Tesla private for
$420 a share.
Last week, Musk stunned Wall Street when he tweeted, “Am considering taking Tesla private at $420. Funding secured.” That pronouncement sent Tesla shares surging and immediately raised questions about who or what Musk meant when he said he had secured funding. Earlier this week, Musk said he had spoken with officials from Saudi Arabia’s sovereign wealth fund about helping to finance his plans to take Tesla private.
After Musk’s tweet, social media buzzed with speculation that the $420 a share was tied to the popular use
of the number 420 to represent marijuana. Some questioned if Musk was using pot when he sent out his now-famous tweet.
Musk clarified in the Times interview that he wanted to offer what, at the time, was a 20 percent premium on Tesla’s stock — putting the take-private price at $419 a share.
“It seemed like better karma at $420 than at $419,” Musk said. “But I was not on weed, to be clear. Weed is not helpful for productivity. There’s a reason for the word ‘stoned.’ You just sit there like a stone on weed.”
Musk also said that he sent his original tweet
while driving from his Los Angeles-area home to the airport and that he didn’t run the tweet by anyone before posting it. Musk said he just wanted to be transparent with the idea about taking Tesla private.
Since then, Musk and Tesla have come under scrutiny by the Securities and Exchange Commission, and Tesla’s board of directors has set up a special committee to evaluate any formal take-the-company-private proposals.
Musk said the stress of leading Tesla at this time is weighing on him physically.
“It’s not been great, actually. I’ve had friends come