Speaking at the National Governors Association Summer Meeting in Rhode Island on Saturday, Musk reiterated that shares of Tesla are trading at a level "higher than we have any right to deserve" based on optimism about the company's future.
"Those expectations sometimes get out of control," Musk added.
It would appear others share Musk's views.
The electric car company's stock has fallen nearly 10% this month to $327.78 as of Friday after missing delivery expectations (again), getting a slew of bearish Wall Street estimates, and performing worse-than-expected on a vehicle safety test.
When Tesla missed second-quarter shipment projections, Goldman Sachs & Co. analyst David Tamberrino lowered his target from $190 per share to $180 on July 5, suggesting in a report that even with the launch of the Model 3, Tesla is likely to miss its production targets. He sees Tesla's cash burn intensifying this year, with the company raising more capital next year.
"Short sellers were so convinced that Tesla stock would fall dramatically and although they were slightly profitable with Tesla's stock price weakening after a first quarter run-up, they were willing to pay stock borrowing fees over 25% in parts of the second half of 2016 which ate up all of their profits and actually caused them to lose money on a net of financing basis," S3 Partners' Dusaniwsky wrote.
Tesla's shares fell 3.3% to $317.01 early Monday afternoon.
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