Elon Musk takes the high road

Elon Musk takes the high road

Elon Musk takes the high road

The erratic behavior of CEO Elon Musk on Twitter and the unsustainable push to lift Tesla Model 3 production puts into question the fair value of the company.

Viecha also restated Tesla's forecast that it will build 50 000 to 55 000 of its Model 3 sedans in the current quarter, and indicated the company's working capital will improve as production increases, Spak wrote.

"Longer-term, however, we remain neutral on Tesla, as we believe the stock is unlikely to meaningfully break out of this range until investors get clarity on normalized Model 3 gross margins/profitability, as well as product quality", stated Sacconaghi. The stock price has dropped almost 12 percent since the first of the year. Praised by reviewers, but subject to production delays and reports of inconsistent quality, the vehicle has put pressure on Tesla to prove it can transition from a luxury automaker to a mass-market one.

Shares of electric-car company Tesla (NASDAQ: TSLA) moved higher Monday, rising as much as 6%.

Shares of Tesla are down 14% since the start of this year.

Elon Musk continues to focus on how he can get Tesla to have more new cars rolling off the production lines every day.


Chief accounting officer Dave Morton resigned after just one month in the job because of discomfort with the attention on the company and pace of work during that time, Tesla said in a filing on Friday.

Last week, Left filed a class action lawsuit that accuses Musk of securities fraud after he tweeted in August that he had "funding secured" for a plan to take Tesla private at $420 a share.

Tesla did not immediately comment Tuesday on the Nomura note. The company said in its second-quarter earnings letter this year that it expects to post consistent profits starting in the third quarter, and the high-end Model 3s generate better margins than the base model would. Both said it would be highly unlikely for deliveries to begin in September and more likely for them to begin in 2019. Shares fell 2% Tuesday and are now down more than 20% in the past month.

"With the launch of the Model 3, we saw that consumers were willing to forego compelling alternatives despite extended wait times and a premium price point".

Per usual, analysts have plenty to say about the stock.

But Sacconaghi said the company remained on track to meet key vehicle manufacturing targets in the third quarter and predicted shares would return to their historic range as the aborted go-private campaign becomes a more distant memory. The Motley Fool owns shares of and recommends Tesla.

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