Tesla shares drop after CEO Elon Musk tweets ‘stock price is too high’
The \”Squawk Alley\” team discusses new tweets from Tesla CEO Elon Musk in which he says he will sell off all physical possessions and that Tesla’s stock price is too high.\n\nShares of Tesla dropped as much as 12% Friday after CEO Elon Musk tweeted that the company’s shares are priced “too high.”\n\nThe company just days before reported a strong quarter, sending shares higher. Tesla stock was trading at 760.23 just before Musk tweeted and then fell to a session low of 717.64, before falling even more.\n\nMusk has had problems with the SEC for tweeting about the company’s stock in the past. Musk has since agreed to submit his public statements about Tesla’s finances and other topics to vetting by its legal counsel. The agreement came after Musk’s famous tweet in August 2018 saying he wanted to take Tesla private at $420 per share and that he had secured the funding to do so. It’s unclear if Musk had that approval for his tweets Friday. When asked by the Wall Street Journal if the tweet was a joke or vetted, Musk reportedly replied: “No.” The SEC declined to comment.\n\nTesla is in the midst of defending itself in a significant volume of shareholder and other lawsuits. A federal judge decided in early April that Tesla and Musk have to face suit over his infamous $420 tweets. Shareholders claim that Tesla misled them when Musk said on Twitter in 2018 that he was considering taking Tesla private for $420 per share, and had secured funding for the transaction. Shares skyrocketed, trading was halted and volatility followed.\n\nIn January, all board directors of Tesla besides Elon Musk settled a shareholder lawsuit over the company’s $2.6 billion acquisition of SolarCity in 2016. They paid $60 million for their part of the settlement. But Musk is due to stand trial as a last defendant against claims he used Tesla to bail out a failing solar installer, which he co-founded and ran with his first cousins, Lyndon Rive and Peter Rive.\n\nFor access to live and exclusive video from CNBC subscribe to CNBC PRO: \nhttps://cnb.cx/2JdMwO7 \n \n» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision\n» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC\n» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic\n \nTurn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.\n \nConnect with CNBC News Online\nGet the latest news: http://www.cnbc.com/\nFollow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC\nFollow CNBC News on Facebook: https://cnb.cx/LikeCNBC\nFollow CNBC News on Twitter: https://cnb.cx/FollowCNBC\nFollow CNBC News on Instagram: https://cnb.cx/InstagramCNBC\n \n#CNBC\n#CNBC TV
Tesla shares jumped after promises of Elon Musk
Tesla shares jumped more than 6% Thursday after Electrek, a news website about electric vehicles, reported that CEO Elon Musk said the company had "There is a chance" deliver 100,000 vehicles this quarter, a new record.
Here’s what follows from Musk’s email to Tesla employees that got to Electrek..
Musk writes: «We have a chance to deliver 100,000 vehicles for the first time this quarter, which is an incredibly exciting milestone for our company.!». According to him, the number of orders exceeds 110 thousand..
The CEO also reportedly added: «The challenge is to make sure we have the right vehicle options in the right locations and make the most of our company’s resources to complete deliveries in the current quarter».
The automaker is expected to announce its quarterly vehicle deliveries in the next few days.
Tesla shipped about 95,000 electric vehicles last quarter.
Tesla predicts that the company will ship between 360,000 and 400,000 vehicles worldwide throughout the year..
The automaker has 12 ratings according to Bloomberg «buy», nine ratings «Keep» and 14 ratings «sell» from analysts, with a consensus price of $ 271.18.