Tesla's share price is too high, says Elon Musk, as James Murdoch and Linda Johnson Rice join board

 
Lynsey Barber
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Tesla boss Elon Musk tells investors to look to the future (Source: Getty)

Entrepreneur Elon Musk was forced to clarify comments that Tesla's share price is too high which sent stock sliding by around three per cent.

The Tesla chief told an audience it was "higher than we have any right to deserve" and that he had "gone on record several times" saying this.

"I find it quite tough when there are very high expectations. I try to tamp down those expectations ... The stock reflects a lot of optimism about where Tesla will be in the future."

Read more: Elon Musk has shared some very snazzy snaps of the first mass market Tesla

He certainly did that if the stocks movement is anything to go by. But, he took to Twitter to reassure investors with a clarification

"Tesla stock is obviously high based on past and present, but low if you believe in Tesla's future," he said.

"Place bets accordingly," he added.

It came as the electric car maker announced two new appointments to its board: 21st Century Fox chief executive James Murdoch and Johnson Publishing Company chairman and chief Linda Johnson Rice.

The move will please some investors who have called for greater independent oversight when it comes to governance to limit Musk's controls.

Read more: Elon Musk's next mission: Building the world's biggest lithium ion battery

The California State Teachers’ Retirement Fund and Hermes Equity Ownership Services were among supporters who called earlier this year for the appointments to prevent "groupthink".

Telsa is due to start delivering its first mass market car, the Model 3, at the end of the month.

Tesla stock closed down 2.5 per cent to 319.57. It's up 47 per cent since the start of the year.

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