Here’s a lesson about what not to do as CEO: Trash your own stock.
TSLA… which was headed into $300-$320 territory… just hit an iron wall.
Unbelievably, Elon Musk came out with the following statement last night:
“I think our stock price is kind of high right now,” Musk said Thursday, responding to a question from CNBC at the news conference in Carson City. “If you care about the long term, Tesla, I think the stock is a good price. If you look at the short term, it is less clear.”
Stock price goes up and down by itself… it’s never, never, never a good idea to actually open your mouth about stock price, though… as TSLA is learning this morning with it sharply falling.
Wonder how all those folks that put their butts’ on the line to support Musk’s vision feel now?
Employees dreaming of buying cars & houses with well-earned stock appreciation? Seems like there might be some morale issues around the ‘ole water-cooler this morning.
How about analysts like Stifel Nicolaus’ James Albertine, who recently gave TSLA a full vote of confidence with a $400 price target?
Elon, the proper answer to the question of whether your shares are overpriced is: “It certainly reflects the enthusiasm that investors — and our customers — have for our products.”
My guess is Musk is going to have some ‘splainin’ to do pretty quickly.
Update: Others came to the rescue… and pointed out that this isn’t the first time Musk has publicly stated TSLA was high… from Forbes:
This isn’t the first time Musk has said publicly that Tesla stock is too high. In August 2013, he said, “I actually think the value of Tesla right now is, the market is being very generous. And they’re obviously giving us a lot of credit for future execution. So we’ll do our best to honor the faith the market has placed in us.” In November of last year he reiterated: “I believe I said several times that the valuation was more than we had any right to deserve… I was not the one who thought the valuation should go up to such levels.”
Tesla shares were up over 400% in 2013 when Musk began speaking out against his own stock. The share price fell about 20% in the final quarter, but have rebounded to be up over 80% in 2014.