Tesla’s (NYSE: TSLA) stock price has been struggling to regain the upside momentum over the past couple of weeks after hitting an all-time high of $500 at the beginning of this month. Unfortunately, Elon Musk remarks about the stock price could create more volatility as the chief executive officer says Tesla stock is overvalued at the moment.
Musk has repeated his earlier stance despite a massive share price gains in the past couple of months. In May, he had tweeted that Tesla shares are highly-priced. The shares fell almost 10% on that day.
“I think some critical mass of the market has concluded that Tesla will win, I guess. I mean, I’ve gone on record already as saying I think the stock price is a bit high. That was well before its current level. But if you also ask me, do I think Tesla will be worth more than this in five years? I think the answer is, yes,” Elon Musk said.
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The chief executive officer says he not concerned about the stock performance. Instead, Tesla is focusing on achieving sustainable volume and cash flow growth, which the majority of companies in the car manufacturing industry failed to do.
“My premise is never to try to convince people why they should invest in Tesla. Sell your stock, I don’t care. The thing that Tesla has been able to achieve is to get to a volume manufacturing and have sustainable positive free cash flow. From a car company standpoint, this is the real achievement of Tesla,” he added.
He said hundreds of new startups remained unsuccessful because they failed to impress buyers over the long term. Musk said only Ford (NYSE: F) and Tesla have not gone into bankruptcy in the entire industry.
Tesla stock price soared more than 750% in the past twelve months. Tesla has generated profits in the past four consecutive quarters. Its operating cash flows came in around $520 million in the first half of this year.
