Musk Admits "Tesla's Market Cap Is Higher Than We Have Any Right To Deserve"

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Having taunted shorts just over a month ago, Tesla CEO Elon Musk appears to have flip-flopped back to reality this morning, admitting in an interview with The Guardian that “I do believe this market cap is higher than we have any right to deserve,” adding “we’re a money losing company.”

When Tesla stock surpassed $300 in early April, Musk took to Twitter…

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But now, with the stock just back above $300, he appears to be admitting it’s all smoke and mirrors…

Musk also said that Tesla should not be compared to major US carmakers and that its market capitalization, now more than $50bn, is unwarranted. “I do believe this market cap is higher than we have any right to deserve,” he said, pointing out his company produces just 1% of GM’s total output.

 

“We’re a money losing company,” Musk added. “This is not some situation where, for example, we are just greedy capitalists who decided to skimp on safety in order to have more profits and dividends and that kind of thing. It’s just a question of how much money we lose. And how do we survive? How do we not die and have everyone lose their jobs?”

You decide…

As a reminder, Tesla sold 76,285 cars last year. That compares to over 10 million for GM worldwide and 6.65 million for Ford.

 

Musk’s response…