Tuesday, March 19, 2024

Meanwhile, In Elon's World..."Tesla Stock Fell. Elon Musk’s Comments on Flying Cars and Drugs Aren’t Helping" (TSLA)

 From Barron's, March 19:

Shares of the EV company retreated after starting the week with a gain of 6.3% on Monday.

Tesla stock reversed its strong start to the week and fell Tuesday.

The stock market deserved some of the blame early in the day, but investors also need to consider the impact of recent comments from Tesla CEO Elon Musk.

The electric-vehicle maker’s shares closed down 1.4% at $171.32, giving back some of Monday’s gains. The S&P 500 and Nasdaq Composite opened in the red but closed up 0.6% and 0.4%, respectively. On Monday, Tesla shares had gained 6.3% to $173.80.

The stock move came after Tesla Chief Executive Elon Musk dismissed investors’ worries about his alleged drug-taking in an interview posted on X, his social-media platform, on Monday.

Musk told former CNN host Don Lemon that he only took ketamine, an anesthetic, that was medically prescribed for depression. “I can’t really get wasted because I can’t get my work done,” said Musk. “I’m putting in 16-hour days. That’s normal for me.”

He added: “From a standpoint of Wall Street, what matters is execution. For investors’ standpoint, if there is something I’m taking I should keep taking it.”

The comments came after The Wall Street Journal published reports earlier this year detailing Musk’s alleged illegal drug use.

Musk dismissed the reports on X, pointing out he regularly passes drug tests.

Along with addressing drugs, Musk spoke about Tesla’s stock price. Coming into Tuesday trading, shares were down about 30% year to date.

“Stocks go up and down, but what really matters is are we making and delivering great products,” he said. Tesla’s Cybertruck is a “special product” and the Model Y was the best-selling car on the planet, gas or electric, in 2023, Musk said.

Musk also hinted that the new Tesla Roadster might fly—sort of. The Roadster is a collaboration with SpaceX and will have some rocket technology. “Totally Jetsons vibes, [it] will do zero to 60 in under one second,” he said.....


To paraphrase the joke attributed to Abraham Lincoln, "Find what brand of ketamine he uses and give it to the rest of our captains of industry."