Thursday, May 18, 2017

Elon Musk Says Tesla Does Not Deserve Its Market Capitalization, Stock up $7.00 On the Mention (TSLA)

Some folks may have thought we were going to the Onion once again. No need, reality is stranger.
From The Guardian, Thursday 18 May 2017 :
...In a phone interview about the conditions at the factory, which employs about 10,000 workers, the Tesla CEO conceded his workers had been “having a hard time, working long hours, and on hard jobs”, but said he cared deeply about their health and wellbeing. His company says its factory safety record has significantly improved over the last year.

Musk also said that Tesla should not be compared to major US carmakers and that its market capitalization, now more than $50bn, is unwarranted. “I do believe this market cap is higher than we have any right to deserve,” he said, pointing out his company produces just 1% of GM’s total output.

“We’re a money-losing company,” Musk added. “This is not some situation where, for example, we are just greedy capitalists who decided to skimp on safety in order to have more profits and dividends and that kind of thing. It’s just a question of how much money we lose. And how do we survive? How do we not die and have everyone lose their jobs?”...MORE
HT: Jalopnik:
Elon Musk Has No Idea Why Wall Street Values Tesla So High

The stock finished at $313.06 up $6.95 (+2.27%) for the day.
The story came out an hour before the close before the open.