Shares of electric car-maker Tesla Motors (TSLA) sank more than 1% in Friday morning trading after its founder and CEO made comments about the wisdom of shorting the stock.
Tesla shares have soared this year on the strength of a flurry of good news about the nascent auto manufacturer. On Thursday, Elon Musk appeared on Fox Business to promote a cross-country trip in the company’s Model S car. Asked about the stock’s recent performance and a history of high shorting of Tesla shares, Musk said that shorting Tesla shares was “not as crazy” an idea now, compared to previous times.
Musk clarified that he thinks that shorting Tesla “is probably not a good idea.” He noted that the company hoped to launch its Model X SUV by the end of next year.
The company, launched almost a decade ago, recently reported its first-ever quarterly profit.
It also said this year that it would repay $465 million in federal loans five years ahead of schedule.
Musk has indicated that he plans to expand Tesla’s production outside the U.S. in order to meet expected overseas demand.