Elon Musk says NYT story cost Tesla $100 millionMon, 25 Feb 2013 00:00:00 -0800
Tesla CEO Elon Musk told Bloomberg TV on Monday that the recent negative New York Times review of the Model S sedan decreased the company's stock-market value by as much as $100 million.
The NYT-Tesla saga began on Feb. 8 with reviewer John Broder recounting the tale of how he was stranded when the Model S didn't live up to its 300-mile claimed range. Musk bit back the following week, saying the review was a “fake” and that the reviewer didn't follow the correct charging and driving procedures. The Times' public editor countered in a blog on the paper's website, but he admitted there were some flaws in the story.
When the Bloomberg interviewer pressed Musk on the $100 million quote, saying that would equal 1,000 cancelled orders, Musk backpedaled, saying that number includes sales and “brand damage.”
Bloomberg did report that Tesla's shares fell 8 percent between the day the article was posted and Feb. 22. That translates to a slide of about $356 million.
The electric Tesla Model S has been a lightning rod both for praise and criticism. On one hand, it'll beat a BMW M5 sedan to 60 mph. In our hands, it got stuck in a driveway. Many allege that Musk and Tesla are using the public for beta testing, while others point to the fact that the car has won several awards.
To us, these high and low points represent the birthing pains of a new automaker still coming into its own.
The full interview from Bloomberg:
By Jake Lingeman