CEO issues third stock warning

Musk three stock warnings TeslaMondoHere are Musk’s three warnings on TSLA share price:

Warning 1, Aug. 22, 2013
Warning 2, Oct. 24, 2013
Warning 3, Sept 4, 2014

Fair to say we’re not in Kansas anymore? This is a different kind of company with a very different kind of CEO. He attempts to throw in chicanes when necessary, to prevent reckless speed and injury. When mere “sentiment” becomes infatuation, it can be dangerous. Don’t complain about Elon’s eccentricities. They’re all part of the roughage we ordered .

The WSJ is pointing out that Musk’s second warning preceded a big drop in the stock price. But look at the turn of events last fall:

Oct 3: Battery fire
Oct. 24: Musk cautions on stock price
Oct. 28: Second battery fire
Nov. 19: NHTSA opens investigation.

Obviously Musk’s comment was NOT to blame for the share slide. Rather, it was a significant crisis of confidence in the product, since corrected. And the WSJ article has since been corrected after the author received a head kick in the comments section.

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2 thoughts on “CEO issues third stock warning

  1. As Elon is a child of the dot com bubble, it is interesting to watch how TSLA has traded as it looks to me more like an internet company such as eBay than a car company like Ford.

    One thing to track for a stock like TSLA is open short interest. At one point TESLA was the most shorted stock on the NASDAQ which in my opinion has more to do with it’s meteoric rise than anything else. Short interest has been falling lately so it is worth checking up on the latest numbers when they are released tomorrow. If it falls to under 20 millions shares that’s not good.

    http://www.nasdaq.com/symbol/tsla/short-interest

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  2. Short interest dropped to 21,660,743 which is 17% of outstanding shares. 17% is pretty high but nowhere near the insane 25%+ levels it was about six months ago. Last time short interest was this low was 10/31/13. Nothing dramatic here but as the shorts continue to unwind their positions it makes it more and more unlikely we’ll see any more short squeeze fueled panic buying.

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