Tesla shares bounce as Musk risk seen as overblown

Wall Street’s Red Lights Flashing on Tesla’s Ability to Pay Debt

Shah stated in his note that he had been one of Tesla's biggest bulls since starting his coverage of the company last October, but recent developments concerning Elon Musk have been less than encouraging, particularly regarding the CEO's Twitter behavior. Investors of Tesla and customers who reserved the Model 3 started voicing their opinions and brought the heat to the CEO.

Tesla shares surged Monday after Baird published a bullish note on the company. Then, earlier this month, a handful of Tesla executives announced their departure after Musk appeared on The Joe Rogan Experience podcast speaking on topics such as electric airplanes while sipping whiskey and smoking marijuana.

"Moving two of seven Tesla colors off menu on Wednesday to simplify manufacturing".

In June, the company met a long-delayed goal of making 5,000 Model 3s in one week, but in addition to sustaining that rate of production, it has a new hurdle to clear: delivering the $35,000 base-priced version of the Model 3 that prompted Tesla to make the vehicle in the first place.

Daniel Sparks owns shares of Tesla. If Tesla does build and deliver more than "twice" as many cars as it did last quarter, that means the company would hit something like 107,000 vehicles. They have fallen 29 percent from their August 7 intraday high of $387.46 when Musk tweeted about taking the company private.

On the same day of the HR announcement, Chief Accounting Officer Dave Morton resigned after working for only one month at Tesla.

The CEO, who wrote "funding has been secured", later indicated that Tesla would stay public, opening up a Securities and Exchange Commission (SEC) investigation, a lawsuit by short seller Andrew Left and numerous bearish reports doubting that details of a deal had ever been hashed out. Both said it would be highly unlikely for deliveries to begin in September and more likely for them to begin in 2019.

A Tesla spokesperson referred to previous comments in which Musk said Tesla expects to turn a profit in the third and fourth quarters. Over half a million individuals worldwide reserved the Tesla Model 3, and the all-electric auto manufacturer was not ready for that volume of demand.

Analysts on Friday reiterated their call for Tesla to bring in another senior leader.

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

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