Tesla shares bounce as Musk risk seen as overblown


In a blog post dated September 7, Musk said Tesla is about to build and deliver more than twice as many cars as it did last quarter, without being specific about whether the company would accomplish this feat in the third or fourth quarter.

Musk indicated the same in May, when he said Tesla would "lose money and die" if it started delivering the base model.

Sacconaghi also noted that behind the noise from the controversies surrounding Elon Musk, Tesla itself appears to be on track for its Model 3 goals this quarter. The stock price has dropped almost 12 percent since the first of the year. Tesla isn't explaining for now, other than to say it streamlines the production line to some extent.

The electric-car maker finished the day up 8.5 percent, at $285.50, a boost that was also fueled by Baird analyst Ben Kallo urging investors in a note to stick with Tesla "even with the drama".

Tesla Inc (NASDAQ:TSLA) shares have had a rough several weeks, but not everyone on Wall Street is swinging bearish on the electric automaker.

"Moving two of seven Tesla colors off menu on Wednesday to simplify manufacturing". The waiting list for a Model 3 is more than 400,000 strong, and some people have been waiting since March 2016.

Shares in Tesla fell on Tuesday after Nomura analyst Romit Shah downgraded the company from "Buy" to "Neutral" on worries about Mr Musk's erratic behaviour.

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Tesla shares have lost more than 25% of their value since early August in the immediate wake of Musk's "funding secured" tweet.

A Tesla spokesperson referred to previous comments in which Musk said Tesla expects to turn a profit in the third and fourth quarters.

Tesla is under heavy pressure to build as many cars as it can as efficiently as possible, and taking two paint options out of the equation certainly seems like a reasonable move.

David Morton, Tesla's chief accounting officer, resigned within hours of Musk's antics on Rogan's podcast, citing the company's "level of public attention". "I want to be clear that I believe strongly in Tesla, its mission, and its future prospects, and I have no disagreements with Tesla's leadership or its financial reporting".

Shares of the company were down 3.5 percent at $275.56 on Tuesday.

This is the Obsidian Black Tesla Model S.

Analysts on Friday reiterated their call for Tesla to bring in another senior leader. He views the drop off in Tesla shares following controversy over Musk's unapproved tweets regarding a take-private acquisition as overblown.