Tesla is 'no longer investable' due to Elon Musk's antics, firm says

Elon Musk might be hearing from the Air Force about a certain podcast appearance

Elon Musk might be hearing from the Air Force about a certain podcast

Optimism about Tesla's Model 3 progress led analysts at research firm Baird to publish a note on Monday urging investors to "buy even with the drama". Clearly, as added by experts, Tesla is still a greenhorn when it comes to mass production. Tesla's head of investor relations Martin Viecha facilitated the tour, while also provided some updates on the company's upcoming projects. Even if it was live on television, Elon Musk's marijuana episode at the weekend was just one of several weird decisions that have rattled investors in the United States electric carmaker.

Bloomberg's Model 3 production monitor suggests that the current weekly production number of the Model 3 is about 3,500 cars per week, not the 6,000 that Musk had suggested back in July.

Tesla is "no longer investable", Shah said. Musk says it requires the entire paint shop to halt while batches of cars are painted.

Before that, Musk pronounced in early August that he would take Tesla private, but backtracked on that proposal two weeks later. That was the day before Musk announced his plans to take the company private via tweet.

With Musk wanting to get this show on the road, he most likely realized there's just no time for frivolous things like sparkly paint.

Alliance Bernstein analyst Toni Sacconaghi, Jr said much of the pressure on Tesla shares over the last month has been due to the sense Musk is "running wild and can't be contained" following a patch of erratic behavior, including a podcast appearance Thursday night in which he smoked marijuana.

Shares have lost 20% over the past month and are down 8% this year.

"We could raise money, but I think we don't need to, and I think it's better to just not", Musk said.

Contrary to an emerging Tesla bear thesis that demand for the Model 3 is declining, the analysts noted that the electric auto maker is now focused on selling higher-margin cars such as the Model 3 Performance and the Long Range AWD Model 3, where "demand continues to exceed what is being produced".

It may no longer be up to Musk.

The CEO, who wrote "funding has been secured", later indicated that Tesla would stay public, opening up a Securities and Exchange Commission (SEC) investigation, a lawsuit by short seller Andrew Left and numerous bearish reports doubting that details of a deal had ever been hashed out.

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