Tesla Shares Dip on CEO’s Shorting Comments

by Christopher Freeburn | September 13, 2013 9:45 am

Tesla Shares Dip on CEO’s Shorting Comments

tesla model s 630 300x236 Tesla Shares Dip on CEO's Shorting Comments[1]Shares of electric car-maker Tesla Motors (TSLA[2]) 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[3]┬áto 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┬áthat 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[4].

It also said this year that it would repay $465 million in federal loans[5] five years ahead of schedule.

Musk has indicated that he plans to expand Tesla’s production outside the U.S.[6] in order to meet expected overseas demand.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/08/tesla_model_s_630.jpg
  2. TSLA: http://studio-5.financialcontent.com/investplace/quote?Symbol=TSLA
  3. appeared on Fox Business: http://video.foxbusiness.com/v/2667902641001/elon-musk-plans-cross-country-trip-in-tesla-model-s/
  4. reported its first-ever quarterly profit: http://investorplace.com/2013/04/tesla-to-make-profit-for-first-time/
  5. would repay $465 million in federal loans: http://investorplace.com/2013/03/tesla-to-repay-465m-u-s-loans-five-years-ahead-of-schedule/
  6. expand Tesla’s production outside the U.S.: http://investorplace.com/2013/08/tesla-wants-to-go-mass-market-add-factories-worldwide/

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