Entrepreneur Elon Musk was forced to clarify comments that Tesla’s share price is too high which sent stock sliding by around three per cent.
CityAm reports that The Tesla chief told an audience it was “higher than we have any right to deserve” and that he had “gone on record several times” saying this.
“I find it quite tough when there are very high expectations. I try to tamp down those expectations … The stock reflects a lot of optimism about where Tesla will be in the future.”
He certainly did that if the stocks movement is anything to go by. But, he took to Twitter to reassure investors with a clarification
“Tesla stock is obviously high based on past and present, but low if you believe in Tesla’s future,” he said.
“Place bets accordingly,” he added.
I should clarify: Tesla stock is obviously high based on past & present, but low if you believe in Tesla’s future. Place bets accordingly … https://t.co/4zbc6vqZSZ
— Elon Musk (@elonmusk) July 17, 2017
It came as the electric car maker announced two new appointments to its board: 21st Century Fox chief executive James Murdoch and Johnson Publishing Company chairman and chief Linda Johnson Rice.
The move will please some investors who have called for greater independent oversight when it comes to governance to limit Musk’s controls.
The California State Teachers’ Retirement Fund and Hermes Equity Ownership Services were among supporters who called earlier this year for the appointments to prevent “groupthink”.
Telsa is due to start delivering its first mass market car, the Model 3, at the end of the month.
Tesla stock closed down 2.5 per cent to 319.57. It’s up 47 per cent since the start of the year.
