Elon Musk took the stage at the National Governors Association summer meeting over the weekend, and tried to talk down his company’s stock.
“I’ve gone on record several times saying our stock price is higher than we have any right to deserve,” Musk said at the conference, according to video from CNBC.
Shares of Tesla dropped in early trading Monday after Musk’s comments on Saturday. Tesla is down 3.21% Monday, which is counter to its 45.24% run this year.
“I find it quite tough when there are very high expectations,” Musk said. “I try to tamp down those expectations … The stock reflects a lot of optimism about where Tesla will be in the future.“
Tesla has a higher market cap than some of the largest US automakers despite being a boutique, high-end manufacturer. Investors have sent shares higher recently based on expectations of high sales volumes of the Model 3, the company’s first mass-market vehicle.
Tesla hopes to produce 20,000 Model 3s per month by the end of the year and recently rolled the first model off the production line.
News of another potential autopilot crash could also be sending stocks lower on Monday. A man in Minnesota blames his car’s autopilot for suddenly accelerating and sending him, and his three passengers, into a marsh on Saturday, according to the Minneapolis Star Tribune. All four passengers survived with minor injuries.
Tesla disputes the man’s claims, as it did in a similar case from Flordia where a Tesla struck a semi-truck, killing the driver. The case is still ongoing, but the NHTSA did not find any problem with the autopilot functionality in that case.
The company is getting ready for the big Model 3 launch later this month. Tesla has added hundreds of service technicians to its fleet to help deal with an expected service demand increase. Shares jumped after Tesla announced the service additions.
Tesla is currently trading at $316.97 on Monday.