Elon Musk puts his money where his mouth is
Over the last five weeks, Tesla’s share price has appreciated by “roughly 13%” according to Bloomberg. But, if the company’s recently emboldened CEO and founder – who resisted calls for his replacement as chairman just a few weeks ago – is to be believed, there is more on the way. At least, that’s the message that Mr. Musk’s purchase of a further 72,500 shares (for $24.9 million) on Tuesday seems to send.
Over the last 30 days, Tesla’s share price has soared by 18% - is there more on the way?
SOURCE: Yahoo Finance
Part of Tesla’s current rally is down to Musk’s confidence – not just in the market, but also in the boardroom. At the company’s annual meeting last week, he was resolute over Tesla’s short-term viability. He said that the company was “quite likely” to build 5,000 Model 3 sedans a week by the end of this month – which is an ambitious goal by any standards, but particularly so given the difficulties the company faced with Model 3 production earlier this year. Musk’s reaction to these difficulties was also pretty reassuring – he took production over himself, and went back to “sleeping on the factory floor.”
Musk also stepped out of his shoes as technocrat, and into his shoes as businessman – an important skill that too many Silicon Valley thought leaders forget to master (just look at Zuckerberg’s recent Senate hearing, where he tried to explain artificial intelligence to politicians) by discussing the company’s financials. Musk reaffirmed forecasts that Tesla would generate profit and cash in the third quarter of the year, and said that he will dismiss about 9% of employees in service to the company’s drive “toward long-elusive profitability”.
Dominion holds Tesla in its Global Trends Ecommerce Fund.
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