Tesla stock dips as Elon Musk weathers ongoing turmoil

Tonya Becker
August 21, 2018

The Saudis' Public Investment Fund, which recently purchased nearly 5 per cent of Tesla, is in talks for a separate US$1 billion investment in Lucid Motors Inc. that would give the fund control of that fledgling automaker, Reuters reported.

That said, the mythical $35,000 Model 3 likely won't be available until September at the absolute earliest given that Tesla didn't hit a production rate of 5,000 units per week until the end of June.

Mounting concern for Elon Musk's health and his ability to follow through with a pledge to take Tesla private sent the company's shares tumbling below $300 yesterday.

Tesla closed up almost 1 per cent at US$308.44 in NY on Monday, after dropping as much as 5.7 per cent earlier in the day.

Tesla has marketed its top-of-the-line models that boast head-snapping acceleration as having "Insane" and "Ludicrous" modes.

"Ford & Tesla are the only 2 American vehicle companies to avoid bankruptcy", he tweeted. Sovereign wealth funds often have more patience than public markets and could wait for the technology to be ready for the market, he said. The company later received a subpoena from the Securities and Exchange Commission over the tweet. References to Ambien use and driving while tweeting are fueling calls for Tesla's board to step up its oversight of the CEO, chairman and largest shareholder.

In her open letter, which referenced Musk's interview with the Times, Huffington urged Musk to ease up on the long hours at work. She added in a tweet that the Tesla founder should change the way he works. Lucid hasn't commented on the report and Saudi Arabian officials have remained silent since Musk first announced his plans to privatize Tesla. "The key to make it affordable is design, tech improvements and scale", said Musk.

"The revelation that the Saudi fund is subsequently asking Tesla for details of how the company would be taken private suggests to us that any deal is potentially far from even being formally proposed, which is different from our understanding on August 8 which was based on Mr. Musk's statement on Twitter", Brinkman added. The company has since assembled a team recruited from Mazda and Tesla, including Chief Technical Officer Peter Rawlinson, who was chief engineer of Tesla's Model S before joining in 2013. Since then? Silence. There had been talk back in 2016 of a factory in Arizona and of a new headquarters facility in Silicon Valley last fall, but while Tesla has been going through production hell, Lucid seems to have been in suspended animation mode. Ford ultimately moved on.

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