Tesla's stock falls sharply after Elon Musk's tearful interview

Tesla's stock tumbled after CEO Elon Musk said he's working himself to the bone and relies on Ambien to slee...

Posted: Aug 17, 2018 11:52 PM
Updated: Aug 17, 2018 11:52 PM

Tesla's stock tumbled after CEO Elon Musk said he's working himself to the bone and relies on Ambien to sleep.

In an tearful interview with The New York Times, Musk said this has been "the most difficult and painful year" of his career. He said he works 120 hours some weeks and has trouble sleeping. Musk is also CEO of SpaceX and The Boring Company.

Investors weren't sympathetic.

The stock closed down 9% on Friday, and it's down 21% since the day Musk tweeted he had secured funding for a private takeover of Tesla.

Musk hasn't exactly given investors confidence that he's on the ball.

He admitted in the Times interview that he hadn't cleared his tweet with anyone at Tesla before firing it off midday August 7.

He also said that the price he chose — $420 a share — was somewhat arbitrary. He wanted it to be a 20% premium, which would have been around $419. So he tweeted $420 because it was "better karma."

Musk explained himself in a blog post this week, and he left the impression that he hadn't exactly secured the funding.

He said he left a July 31 meeting with the Saudi sovereign wealth fund "with no question that a deal with the Saudi sovereign fund could be closed, and that it was just a matter of getting the process moving."

That is far more preliminary than his tweet led investors to believe. The board also said it hasn't even fully explored whether to go private.

That's one of the reasons the stock has fallen so much after soaring 11% on the day of his tweet.

But Musk's tweet has also opened Tesla to increased scrutiny and lawsuits. The SEC is reportedly investigating Musk's tweet and had already been looking into Tesla's Model 3 production troubles. SEC has declined comment to CNNMoney.

The Times reported that some Tesla board members are concerned about Musk's frequent use of Ambien as well as his occasional use of recreational drugs.

"We would like to make clear that Elon's commitment and dedication to Tesla is obvious," Tesla said in a statement. "Over the past 15 years, Elon's leadership of the Tesla team has caused Tesla to grow from a small startup to having hundreds of thousands of cars on the road that customers love, employing tens of thousands of people around the world, and creating significant shareholder value in the process."

New York Coronavirus Cases

County data is updated nightly.

Confirmed Cases: 486480

Reported Deaths: 33366
CountyConfirmedDeaths
Queens753447288
Kings734337373
Bronx545234980
Nassau487312204
Suffolk481212016
Westchester396161460
New York351253192
Rockland17269680
Richmond167821091
Orange13218502
Erie12513708
Monroe6798300
Dutchess5355163
Onondaga5052207
Albany3436136
Broome300383
Oneida2599128
Ulster241995
Niagara1968101
Putnam175263
Sullivan168248
Schenectady151050
Chemung13323
Saratoga121917
Rensselaer104042
Steuben88457
Chautauqua80513
Columbia65738
Ontario59835
Oswego5944
Tompkins5560
Madison53717
Greene47718
Tioga45925
Warren43933
Cortland4360
Cattaraugus4176
Wayne3865
Genesee3715
Herkimer37110
Orleans36854
Otsego3685
St. Lawrence3684
Fulton36024
Chenango3317
Washington32614
Cayuga3022
Montgomery2564
Livingston2508
Allegany2201
Clinton2155
Essex1940
Jefferson1920
Wyoming1675
Delaware1597
Seneca1283
Schoharie1010
Schuyler1000
Yates987
Franklin770
Lewis570
Hamilton160
Unassigned020
Utica
Overcast
61° wxIcon
Hi: 74° Lo: 47°
Feels Like: 61°
Oneonta
Overcast
59° wxIcon
Hi: 73° Lo: 51°
Feels Like: 59°
Herkimer
Overcast
61° wxIcon
Hi: 73° Lo: 49°
Feels Like: 61°
Thendara
Overcast
61° wxIcon
Hi: 62° Lo: 41°
Feels Like: 61°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
Click here to learn more about A Healthier Mohawk Valley
Submit Costume Contest Pics by October 21st
Saluting Those Who Are Proud 2 Serve
WKTV Golf Card - Under 150 left