Monday, December 10, 2018

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Elon Musk, CEO of Tesla

Beck Diefenbach | Reuters
Elon Musk, CEO of Tesla

CFRA just raised its price forecast on Tesla to $420 a share — the same as the now-infamous price target CEO Elon Musk told investors they would get if he tookthe company private earlier this year.

Tesla did not respond to a request for comment.

Tesla has been reportedly boosting Model 3 production at its Fremont, California, factory, where it continues to build some of its cars inside a temporary tent-like structure. The electric car maker took the extraordinary measure to speed up its production after months of falling behind deadlines.

Now, Musk reportedly wants to start transitioning from focusing on production to controlling costs and reducing the car’s price.

Musk made the price of $420 a share famous when he tweeted in early August that he had already secured funding to take Tesla private at that price. He abandoned the plan near the end of that month. The incident shocked investors and created a storm of controversy for the company, including an eventual lawsuit and settlement with the Securities and Exchange Commission.

The SEC said in its settlement that Musk arrived at $420 a share by adding 20 percent to Tesla’s then-share price and rounding up to $420 because of “the significance of that number in marijuana culture, and his belief that his girlfriend would be amused by it.”


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