Tesla Shares Slipping After Elon Musk’s Tearful Interview With The New York Times


In an hour-long interview with the newspaper, Musk also shared details about using Ambien to support sleep – a drug with many side effects, including sleepwalking. Musk said: “My choice is to not sleep or use Ambien.”

Tesla has had the worst trading week since 2016 after Elon Musk told the New York Times that no one had read or checked the tweet about the company’s privatization plan before posting on Twitter.

Musk, the CEO also president of Tesla, said in an interview with the New York Times that he wrote the tweet while driving to the airport on August 7, with the content considering about Tesla privatization for $420 per share. The billionaire often tears in the interview and talks about the tensions he faces in driving the company.


Shares in Tesla fell 8.9% last weekend, closing at $305.50 a share. The four consecutive days of losses have eroded the gains so far this year of Tesla shares. The total stock fell 14% – the sharpest decline since February 2016.

The tweet has triggered a positive surge in Tesla shares, but Musk also faces close scrutiny, an investigation by the Securities and Exchange Commission.

Almost a week later, the CEO said the basis for his tweet was that Tesla had a discussion with the Saudi Arabian Public Investment Fund (PIF), which they had previously been very excited about helping privatize the company by 2017.

Tesla’s board of directors did not receive a formal offer from Musk, nor did it know whether the privatization plan was feasible or not. According to an informed source, this week, Musk may have received a subpoena for further investigation.

According to the New York Times, a plan calling for capital is being considered for the privatization process for SpaceX, to fund the deal and hold Tesla’s stake.

In addition, recruiting an additional executive position to ease the pressure on Musk is also underway. Tesla also mentioned the job with Facebook executive Sheryl Sandberg. But then there was no good news about it.

Musk told the newspaper: “If you know anyone who is capable of doing better, let me know.”

According to the analysts of Evercore ISI, although Tesla’s future is somewhat unsettled, the production of Model 3 – which caused Elon Musk to sleep at the plant – is progressing well with yielding the right target production weekly.

In the interview, Musk said he had to sacrifice family memories to secure Tesla’s production goal, almost to miss his brother’s wedding.

The CEO called this episode “extremely painful” and added: “Last year was the hardest and most painful year of my career.”

Musk told the newspaper that he did not receive any communication from the board of directors and that he “certainly did not receive calls from the director with anger.”

Then he also said that the independent director – Antonio Gracias – contacted him about the tweet on August 7. And Musk agreed not to post tweets that related to privatization if he does not previously discuss with the board.


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