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Tesla Stock Passes $700 For First Time In 3 Months, Musk Tweets Raise Questions

Tesla Stock Passes $700 For First Time In 3 Months, Musk Tweets Raise Questions


Tesla shares traded at a three month high Monday even as investors parse messages from founder Elon Musk that may question his future as group CEO.



Elon Musk on a stage: Tesla Stock Passes $700 For First Time In 3 Months, Musk Tweets Raise Questions


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Tesla Stock Passes $700 For First Time In 3 Months, Musk Tweets Raise Questions

Following a revelation last week that Musk will no longer participate in Tesla earnings conference calls “unless there’s something really important that I need to say”, the billionaire Tesla founder said “I don’t want to be CEO of anything” during a Twitter discussion linked to his criticism of Apple amid the tech giant’s lawsuit with Epic Games.

https://twitter.com/elonmusk/status/1421206105720557575

The comments could raise further questions over his future as CEO of the clean-energy carmaker, which posted record net income of $1.142 billion for the three months ending in June as revenues rose 98% from last year to $11.96 billion and deliveries hit an all-time high of 201,250 vehicles.

Musk also warned investors that the global shortage in semiconductor supplies remains “quite serious” and could impact production rates over the second half of the year, adding that volume growth will depend on the availability of other parts in the global supply chain.

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“The chip supply is fundamentally the governing factor on our output,” Musk told investors, “It is difficult for us to say how long this will last because [it’s] out of our control essentially. It does seem like it’s getting better, but it’s hard to predict.”

Tesla shares were marked 4.5% higher in early Monday trading to change hands at $718.14 each. The stock hit an April 27 high of $719.24 each earlier in the session.

As we have written before, however, Tesla’s high valuation leaves little room for less-than- perfect execution, as evidenced by a relatively tepid reaction to what was a fairly sizable EBIT beat, and we did see some less than perfect takeaways, including … the surprise announcement that Tesla’s popular with investors CEO will now mostly not appear on quarterly earnings conference calls,” said JPMorgan analyst Ryan Brinkman, who carries a underweight rating with a $180 price target on the stock.

This article was originally published by TheStreet.

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