Tesla shares slip as analyst calls company "uninvestable"

Isaac Cain
September 11, 2018

The gains also came after Musk himself said in an email to employees late Friday that the company was on track for the "most unbelievable quarter in our history" and urged employees to ignore "fuss and noise" about the company in the media.

Tesla was already under pressure before the note.

"Since I joined Tesla on August 6th, the level of public attention placed on the company, as well as the pace within the company, have exceeded my expectations", Morton said in a Form 8-K filing, dated September 4. Shares slid 13% last week after CEO Elon Musk was filmed smoking marijuana during a live interview, and amid personnel changes that saw chief accountant Dave Morton resign. Baird published a bullish note on Monday, recommending traders continue to "buy even with drama".

"We see the current dip in Tesla's stock as analogous to prior trading opportunities, which have tended to arise when the stock falls below ~$300 per share ..."

It takes more than a toke on a joint by a CEO to bring down a company these days - and Tesla is no different. We think the setup in sentiment looks relatively favorable for the next few weeks. However, Tesla's shares have fallen 18.6 per cent since the start of the third quarter, and shares are still way off the now-abandoned target of US$420 per share.

But it's more likely those deliveries will begin in 2019 as Tesla focuses on generating higher profits with more expensive models, according to Jeremy Acevedo, a manager of industry analysis for Edmunds.

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"However, it is unclear to us that any of these are deal breakers for the stock", he said.

Tesla's board has been on the lookout for senior talent but not actively searching for a chief operating officer, a person familiar with the board's thinking told Bloomberg News in August. He said in the email that Tesla will build and deliver over double the amount of cars it did in the second quarter, when it built 53,339 and delivered 40,740. "The company appears to remain on track to meet its Model 3 production guidance".

During the three months that ended in June, Tesla produced 53,339 vehicles and delivered 40,740. "In the past two years alone, an unprecedented 23 executives have left Tesla", he wrote.

"That's laughable", the employee said of Musk's prediction.

Tesla owners must be blasting Visions through the streets of Palo Alto because Grimes streams are up ... way up.

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