Shares of Tesla (TSLA - Free Report) fell 3% in mid-morning trading on Monday after CEO Elon Musk said the company’s stock “is higher than we have the right to deserve.”
On Saturday, Musk spoke at the National Governors Association Summer Meeting in Rhode Island. He told Nevada Governor Brian Sandoval, “I’ve gone on the record several times that the stock price is higher than we have the right to deserve and that’s for sure true based on where we are today.”
According to Musk, shares of Tesla trade higher based on optimism about the company’s future. “Those expectations sometimes get out of control,” Musk said.
Musk’s statement also follows news from Minnesota that a driver blames his Tesla’s autopilot feature for a car accident. After engaging the autopilot feature, the driver’s Tesla accelerated and overturned in a marsh. He and four other adults in the car were slightly hurt.
The electric car company’s stock has been falling consistently this month after hitting an all-time high in late June. Since then, Tesla stock has fallen over 10% after the company missed delivery expectations, performed worse-than-expected on a vehicle safety test, and missed second-quarter shipment projections.
Tesla remains a Zacks Rank #3 (Hold). Our consensus estimates show that the company will have positive year-over-year sales growth for the current year. Tesla is expected to report its next quarterly earnings on August 2 after market close.
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