Tesla's stock falls sharply after Elon Musk's tearful interview

Tesla's stock tumbled after CEO Elon Musk said he's working himself to the bone and relies on Ambien to slee...

Posted: Aug 17, 2018 10:52 PM
Updated: Aug 17, 2018 10:52 PM

Tesla's stock tumbled after CEO Elon Musk said he's working himself to the bone and relies on Ambien to sleep.

In an tearful interview with The New York Times, Musk said this has been "the most difficult and painful year" of his career. He said he works 120 hours some weeks and has trouble sleeping. Musk is also CEO of SpaceX and The Boring Company.

Investors weren't sympathetic.

The stock closed down 9% on Friday, and it's down 21% since the day Musk tweeted he had secured funding for a private takeover of Tesla.

Musk hasn't exactly given investors confidence that he's on the ball.

He admitted in the Times interview that he hadn't cleared his tweet with anyone at Tesla before firing it off midday August 7.

He also said that the price he chose — $420 a share — was somewhat arbitrary. He wanted it to be a 20% premium, which would have been around $419. So he tweeted $420 because it was "better karma."

Musk explained himself in a blog post this week, and he left the impression that he hadn't exactly secured the funding.

He said he left a July 31 meeting with the Saudi sovereign wealth fund "with no question that a deal with the Saudi sovereign fund could be closed, and that it was just a matter of getting the process moving."

That is far more preliminary than his tweet led investors to believe. The board also said it hasn't even fully explored whether to go private.

That's one of the reasons the stock has fallen so much after soaring 11% on the day of his tweet.

But Musk's tweet has also opened Tesla to increased scrutiny and lawsuits. The SEC is reportedly investigating Musk's tweet and had already been looking into Tesla's Model 3 production troubles. SEC has declined comment to CNNMoney.

The Times reported that some Tesla board members are concerned about Musk's frequent use of Ambien as well as his occasional use of recreational drugs.

"We would like to make clear that Elon's commitment and dedication to Tesla is obvious," Tesla said in a statement. "Over the past 15 years, Elon's leadership of the Tesla team has caused Tesla to grow from a small startup to having hundreds of thousands of cars on the road that customers love, employing tens of thousands of people around the world, and creating significant shareholder value in the process."

Minnesota Coronavirus Cases

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Cases: 448268

Reported Deaths: 6013
CountyCasesDeaths
Hennepin931011480
Ramsey40016739
Dakota33072340
Anoka30999364
Washington20164228
Stearns17871187
St. Louis13690241
Scott1195496
Wright11614104
Olmsted1048475
Sherburne821365
Carver694836
Clay653280
Rice606868
Kandiyohi554371
Blue Earth541033
Crow Wing482774
Otter Tail457167
Chisago452732
Benton420186
Winona389646
Douglas374166
Nobles370846
Mower365529
Goodhue347958
Polk328658
McLeod325345
Morrison311744
Beltrami310347
Lyon302236
Becker284939
Itasca284543
Isanti282841
Carlton280043
Steele27379
Pine266713
Freeborn245321
Todd231730
Nicollet224636
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Le Sueur210015
Cass207623
Meeker199733
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Fillmore12355
Wadena120116
Rock110212
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Kittson37219
Red Lake3174
Traverse2503
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Iowa Coronavirus Cases

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Cases: 305606

Reported Deaths: 4278
CountyCasesDeaths
Polk45754449
Linn17795275
Scott15444163
Black Hawk13773236
Woodbury13016175
Johnson1211749
Dubuque11387150
Pottawattamie8992112
Dallas888671
Story869434
Webster469771
Cerro Gordo466768
Sioux455157
Clinton450361
Warren443938
Marshall427761
Buena Vista393429
Muscatine390477
Des Moines381841
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Wapello344198
Jasper321959
Lee317130
Marion304952
Jones271349
Henry264330
Carroll255434
Bremer245048
Crawford231022
Boone218417
Washington217632
Benton209444
Mahaska193136
Jackson192031
Tama187757
Dickinson186026
Delaware173736
Kossuth173644
Clay168820
Wright164824
Fayette162322
Hamilton160029
Buchanan159923
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Butler148224
Page144715
Floyd139636
Cherokee139027
Mills136416
Lyon135332
Poweshiek132724
Hancock130224
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Iowa125422
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Jefferson120724
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Franklin102418
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Montgomery85622
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Lucas6508
Monona64016
Osceola6409
Worth6113
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Van Buren49712
Decatur4894
Ringgold4389
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