Tesla's stock fluctuated on Monday when his controversial CEO Elon Musk doubled his leadership over his billions-dollar empire – and since his 7th August, 18.7 percent has slipped, driving the idea that he would push take Tesla private.
The share of electric car companies rose by almost 1 percent in trade on Monday after spending the greater part of the day in the red. The tweet raised questions from federal investigators, shareholders and board members, as well as more attention to Tesla's ongoing production problems, increasing debt and Musk's own capricious behavior and leadership style.
While Musk has collected a whole series of negative headlines, the share price of Tesla has flown around, but he has lost ground last year. The price per share this year was about $ 338 and closed at $ 308 on Monday.
On Monday, JPMorgan said the expected Tesla shares would continue to fall for the remainder of 2018, following Musk's announcement of Tesla's private taking. In a note, the analyst said that an "interpretation of subsequent events" after Musk's August 7 tweet "makes us believe that funding was not secured … and that there was no formal proposal." JPMorgan adjusts its guidance for December for the business returns to $ 195 from $ 308.
"Tesla seems to be investigating an ongoing private transaction, but we now believe that such a process seems much less developed than we had previously assumed (more in the style of high-level intention)," the note said.
Still, the share price is so high that shareholders will not lose confidence in Tesla, according to David Whiston, a stock analyst at Morningstar. Tesla will probably have to decide whether it has secured funding to go private before the shares can climb steadily, said Whiston. And despite his antics, Musk does not deter investors.
"As long as you have Elon, you have a lot of leeway," Whiston said. "You have a lot of leeway on the capital markets because you believe in him or not, and at the moment many people believe in him."
Tesla did not respond to a request for comment.
The downward slope since the "tweet secured by the" funding of 7 August reverberated other cases in which Tesla's stock took a strike after Musk's surprise moves.
For example, on a Sunday in the middle of July, Musk went to Twitter to say that a British cave explorer who played a crucial role in rescuing 12 Thai footballers who were trapped in a flooded cave was a pedophile. The Friday before, Tesla's stock was closed at $ 318.87 per share. When trading resumed on Monday after the pedo & # 39; tweet, Tesla shares closed for $ 310.10.
In another case, Musk sent one out series of tweets – on April Fool & # 39; s Day – a joke that his company of electric car went bankrupt. The Friday before, the share price of Tesla was closed at $ 266.13. On the Monday after the fake bankruptcy tweet, the shares closed at $ 252.48.
But Musk has proven to be skilled in using social media to divert attention from Tesla's other ongoing challenges and to keep people focused on the company's ambitions. A former employee of Tesla – now co-founder of the automotive technology company Peloton Technology – told The Post's Drew Harwell that Musk "did not hold much of the president of the United States" in his use of the media.
Last week, Musk provided insight into the extremes of his work and private life, explaining to the New York Times – sometimes crying and laughing – about his physical health and relationships. He said that he had worked up to 120 hours a week and had not taken more than a week off in 17 years. Sometimes he would not leave the Tesla factory for three or four days, he told the Times.
Arianna Huffington – who collapsed from exhaustion in 2007 and has since become a crusader for the importance of sleep – wrote an open letter to Musk on Friday with the question: "Apply the same passion for science, not only for your products, but also for yourself, people are not machines. & # 39;
Just after half past six in the morning on Sunday morning, Musk responded, saying that "Ford & Tesla are the only 2 American car companies that want to prevent bankruptcy."
"I just came home from the factory," he wrote. "You think this is an option, it is not."