Elon Musk Says Tesla Share Price Is Too High

Tesla’s chief govt, Elon Musk, mentioned on Twitter on Friday that the corporate’s inventory value, which had been surging in current weeks, was “too excessive” in his opinion. The inventory fell sharply after the put up, and closed 10.three p.c down.

This week, Tesla announced that it had earned a small profit for the third straight quarter. The company, founded in 2003, has never been profitable over a full year.

Mr. Musk’s comment, delivered amid a stream of unusual posts, might strike some as odd considering he has long railed against short sellers who have targeted Tesla’s stock because they believe it is overvalued.

Recently, he has also fumed over government efforts to contain the spread of the coronavirus. During the company’s conference call with analysts this week to discuss its first-quarter results, Mr. Musk, who has attracted devoted fans and critics, lashed out at stay-at-home orders that have closed Tesla’s Fremont, Calif., car factory, calling them “fascist.”

“They’re breaking people’s freedoms in ways that are wrong and are not why people came here or built this country,” he said on the call, adding an expletive.

Marc Leaf, a partner at Faegre Drinker Biddle & Reath in New York, who has previously worked at the S.E.C., said Mr. Musk’s Twitter post on Friday did not appear to be forbidden but could worry the company’s board.

“Mr. Musk’s tweet is a matter for Tesla’s board of directors, not enforcement personnel,” Mr. Leaf said. “At this point, he’s going to say what he’s going to say. He didn’t violate the law as far as I can tell, but if I were a director, I’d have some concerns about my C.E.O. and founder saying this.”

The company revealed in a regulatory filing this week that it had taken the weird step of dropping an insurance coverage coverage that protected its board members from lawsuits, a regular characteristic at publicly traded corporations, as a result of the charges have been too excessive. As an alternative, Mr. Musk agreed to personally present protection to the board for one 12 months.

The board, which incorporates Mr. Musk’s brother and a number of other longstanding enterprise associates and buddies of the chief govt, decided that the association wouldn’t threaten its independence for the reason that protection is ruled by a binding settlement with Tesla.

Tesla didn’t instantly reply to a request for remark.

Peter Eavis and Neal E. Boudette contributed reporting.

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