Is Tesla's Future Up in Smoke?
Tesla Inc. (NASDAQ: TSLA) shares tumbled on Friday after a couple of developments calling into question its executive leadership. First, Chair and CEO Elon Musk smoked weed on a podcast released Thursday evening. Then it was announced that the company’s chief accounting officer would be resigning after only one month in this role.
Musk smoking weed on comedian Joe Rogan’s podcast comes after what many consider to be a circus of a summer. In August, Musk proposed a buyout price for Tesla of $420 per share — the price point makes more sense now. This tweet brought up many questions of whether it deserved an SEC investigation and if this was market manipulation. Musk would later state that he plans to keep the company public in the best interest of its investors.
Later this turned into a discussion of Musk’s sleeping habits and the fact that he spends an inordinate amount of time working. The pressure clearly got to him after what happened next.
Musk gave an interview with the New York Times during which he appeared to cry, though he would later tweet that he did not do so, only that his voice cracked once during the interview.
With all of this happening in the span of roughly a month, there’s no doubt that investors may be on edge about having Musk as the CEO of Tesla.
Separately, Tesla’s chief accounting officer, Dave Morton, has announced that he will resign after having spent only a month on the job. Morton said that he had no disagreements with Tesla’s leadership or its financial reporting, and that he still believes in Tesla’s mission and prospects.
Overall this is a lot to take in for Tesla investors. The stock is down 26% in the past month, compared to 10% lower year to date.
Shares of Tesla were last seen down about 6.5% at $262.65, with a consensus analyst price target of $322.38 and a 52-week trading range of $244.59 to $389.61.