Musk's Latest Bozo Eruption Not As Financially Damaging As the Last (so Far, Anyway)
There’s a term in Canadian politics — “bozo eruption” — that, according to Wiktionary, refers to the moment when a politician or public figure says something “especially ill-considered and foolish, and which has negative repercussions for that individual and for his or her affiliated group.”
In Tesla CEO Elon Musk’s case, the eruptions seem to be ramping up. Each outburst — be it May’s dismissive earnings call, in which he called analysts’ queries “boring” before taking questions from a YouTuber, or this past weekend’s bizarre assertion that one of the Thailand cave rescuers (and Musk mini-sub disliker) is a pedophile — has a negative, if hazy, impact on the automaker’s stock price.
The most recent utterance didn’t disappoint, but it seems that pissing off Wall Street types is more consequential than accusing international heroes you’ve never met of sex crimes.
Tesla shares fell about 3.5 percent in Monday trading after Musk’s since-deleted Twitter outburst, which seems to have been provoked by British diver Vernon Unsworth’s assertion that the hastily built mini-sub Musk brought to Thailand was useless for the task of rescuing 12 trapped boys from a flooded cave. In a CNN interview published after last week’s harrowing rescue, Unsworth suggested where Musk could shove that sub.
While the stock’s decline erases about $2 billion from Tesla’s market value, May’s combative analyst call was worse. After that incident, Tesla shares fell over 5 percent.
Still, the out-of-the-blue accusation against Unsworth has investors feeling nervous, Reuters reports. The news agency claims a number of analysts and investors have claimed, off the record, that Musk’s comments are “adding to their concerns” about the CEO’s mounting distractions.
With a good number of Tesla Model 3s now rolling out of a tent, those who remain bullish on Tesla want to see all mental energy expended on turning around the cash-losing automaker. This month’s revelation that Tesla just barely squeaked past its end-of-June Model 3 production goal gave many hope, but concerns about sustained production remain. More promises followed this milestone, and those must be kept. Most important is Musk’s assertion that the company will be cash-positive before the end of the year — Tesla needs cash if it plans to go through with the construction of a Chinese assembly plant.
As for the Twitter affair, Unsworth’s wife tells Reuters that the cave diver plans to contact his lawyers upon returning to Britain on July 19th. Neither Musk nor Tesla has issued a comment on the matter.
[Image: Elon Musk/ Twitter]
Join the conversation
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- Nrd515 Usually for me it's been Arby's for pretty much forever, except when the one near my house dosed me with food poisoning twice in about a year. Both times were horrible, but the second time was just so terrible it's up near the top of my medical horror stories, and I have a few of those. Obviously, I never went to that one again. I'm still pissed at Arby's for dropping Potato Cakes, and Culver's is truly better anyway. It will be Arby's fish for my "cheat day", when I eat what I want. No tartar sauce and no lettuce on mine, please. And if I get a fish and a French Dip & Swiss? Keep the Swiss, and the dip, too salty. Just the meat and the bread for me, thanks. The odds are about 25% that they will screw one or both of them up and I will have to drive through again to get replacement sandwiches. Culver's seems to get my order right many times in a row, but if I hurry and don't check my order, that's when it's screwed up and garbage to me. My best friend lives on Starbucks coffee. I don't understand coffee's appeal at all. Both my sister and I hate anything it's in. It's like green peppers, they ruin everything they touch. About the only things I hate more than coffee are most condiments, ranked from most hated to..who cares..[list=1][*]Tartar sauce. Just thinking about it makes me smell it in my head. A nod to Ranch here too. Disgusting. [/*][*]Mayo. JEEEEZUS! WTF?[/*][*]Ketchup. Sweet puke tasting sludge. On my fries? Salt. [/*][*]Mustard. Yikes. Brown, yellow, whatever, it's just awful.[/*][*]Pickles. Just ruin it from the pickle juice. No. [/*][*]Horsey, Secret, whatever sauce. Gross. [/*][*]American Cheese. American Sleeze. Any cheese, I don't want it.[/*][*]Shredded lettuce. I don't hate it, but it's warm and what's the point?[/*][*]Raw onion. Totally OK, but not something I really want. Grilled onions is a whole nother thing, I WANT those on a burger.[/*][*]Any of that "juice" that Subway and other sandwich places want to put on. NO, HELL NO! Actually, move this up to #5. [/*][/list=1]
- SPPPP It seems like a really nice car that's just still trying to find its customer.
- MRF 95 T-Bird I owned an 87 Thunderbird aka the second generation aero bird. It was a fine driving comfortable and very reliable car. Quite underrated compared to the GM G-body mid sized coupes since unlike them they had rack and pinion steering and struts on all four wheels plus fuel injection which GM was a bit late to the game on their mid and full sized cars. When I sold it I considered a Mark VII LSC which like many had its trouble prone air suspension deleted and replaced with coils and struts. Instead I went for a MN-12 Thunderbird.
- SCE to AUX Somebody got the bill of material mixed up and never caught it.Maybe the stud was for a different version (like the 4xe) which might use a different fuel tank.
- Inside Looking Out Scandinavian design costs only $600? I mean the furniture.
Automotive Tycoon's have been making headlines for foolish reasons for over 100 years now. RE: Henry Ford's "Peace Ship" in 1915.
First, Tesla was NEVER worth whatever the stock price indicated; it should have been rated in the mid teens on price since it has done nothing and is not established and is so overextended on its mission - it cannot be a car company, a battery company, intermingle with a space company, a tunnel digging company, and the myriad of other things that are zapping its resources. This company is quite frankly overvalued at $20 period.