Tesla Inc (NASDAQ: TSLA) is trading up in the market this morning, but the gains are relatively minimal considering the large decline that the stock suffered yesterday. With all of the movement, I dug a bit deeper into the stock this morning, only to find a surprising story that followed the suprising request for a refund made by CEO Elon Musk. Today, we’ll talk about:
- Why Musk may be losing his mind;
- what we’re seeing from TSLA stock this morning; and
- what we’ll be watching for ahead.
TSLA May Be In Trouble As Musk Seems To Be Losing His Mind
As mentioned above, over the past two days, we’ve seen two signs that Elon Musk could be losing his mind as Tesla struggles to turn a profit. Here are those signs:
Musk Requests Refunds – Yesterday morning, a story broke surrounding Elon Musk and his request for refunds from the company’s suppliers. According to the Wall Street Journal, TSLA sent out letters to their suppliers, asking for refund for money paid since 2016. Some of the money the company requested refunds for was paid for work that has already been completed.
Ultimately, the company said that it is looking for ways to increase profitability and in providing the refunds, the suppliers are making an investment in their own future. However, if TSLA just wanted profitability, they’d be looking for future discounts, not refunds on money already paid. Ultimately, this looks like cash flow issues that could become a big concern ahead.
Musk Contacts A Twitter User’s Boss – As if Elon Musk asking suppliers for refunds wasn’t enough of a sign that he was going crazy, he actually took the time out of his day to call a Twitter user’s boss. In news broke by @QTRResearch on twitter, Elon Musk apparently called a Twitter user’s boss, complaining about how the user wrote about Tesla on Twitter.
According to reports, the user voluntarily deleted his account. The story has been corroborated by Twitter as well as the twitter user, @markbspiegel. Here’s a copy of the tweet.
Guys – I’m beside myself & before you ask, this is NOT a joke – I just got off the phone with Montana Skeptic. He told me that he voluntarily deleted his Twitter account after Elon Musk personally called his boss to complain. I asked for Montana’s permission to Tweet this. $TSLA
— Quoth the Raven (@QTRResearch) July 23, 2018
My question here is simple. What the heck is a CEO of a massive publicly traded company doing wasting time in his day to call a Twitter user’s boss to complain about the user’s thoughts surrounding the stock. That’s a sign of a CEO going crazy my friends!
What We’re Seeing From The Stock
After the large declines that we saw on Tesla yesterday, the company is starting to see some small gains in the market this morning. At the moment (8:31), TSLA is trading at $306.60 per share after a gain of $3.40 per share or 1.12% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TSLA. In particular, we’re interested in following the flow of money to see if there really is a cash flow issue following the news of the company requesting refunds from its suppliers. We’ll also be watching for any more signs that Musk is either becoming a child or going crazy following his blatant misuse of his spotlit name in calling a Twitter user’s boss to complain. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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