Skip to main content

Why Jim Cramer Doesn't Know If Elon Musk Has 'a Leg to Stand On'

Publish date:
Video Duration:

There are two headlines surrounding Elon Musk and Real Money Stock of the Day, Tesla (TSLA) - Get Tesla Inc. Report , Thursday. 

The first is that Elon Musk has a court date in New York Thursday.

Attorneys for the SEC charged that the tweets demonstrate that Musk's tweets aren't being reviewed by attorneys, as was mandated as part of Musk's earlier settlement with the agency.

In their own legal filings in late March, attorneys for Musk countered that "the SEC's position is wrong at virtually every level." Oral arguments are scheduled for Thursday afternoon E.T., and if Musk is ultimately found in contempt, potential consequences could include more fines for the billionaire or even a trial that forced him to relinquish his roles at Tesla.

And, the second is that Tesla missed its delivery figures. 

Tesla said it delivered 63,000 vehicles, including about 50,900 Model 3s, during the quarter, down 31% from the previous quarter. The electric carmaker pinned the weak delivery volumes on its challenging expansion of sales to China and Europe, saying that it had only delivered half of the entire quarter's numbers by March 21. The carmaker said that it produced 77,100 total vehicles during the first quarter, and that "production exceeded deliveries by 22%."

Tesla warned investors that owing in part to the weak delivery volumes, net income for the quarter will disappoint.

"Because of the lower-than-expected delivery volumes and several pricing adjustments, we expect Q1 net income to be negatively impacted. Even so, we ended the quarter with sufficient cash on hand," Tesla wrote in a statement.

Related. Jim Cramer: Can Musk Really Explain Away These Inconsistent Numbers?

Investing Education Quick Clips | A Playlist for Your Portfolio

Related Videos