Tesla stock drops 7 percent after Elon Musk makes April Fool’s bankruptcy joke

Maybe not a good time from Musk to joke about being bankrupt.

Tesla Model 3 on road

Tesla shares sunk more than seven percent today, following Elon Musk’s April Fool’s Day joke that the company has gone bankrupt, as well as a number of other contributing factors.

The drop brought each share to $248 USD early Monday morning and could be in reaction to factors such as Tesla’s $10 billion USD in debt, as well as the company’s failure to hit the Model 3 sedan targets it set.

Tesla has set a target to sell 5,000 Model 3 vehicles per week by the end of June 2017. So far the company has been forced to move this goal back twice since its original target of hitting 5,000 sedans per week in 2017.

The company is also set to soon release release its first quarter production results, which should drop this week. Early analysis predicts Tesla’s earnings will be below the company’s targets.

These statistics combined with the company’s most recent recall over a bolt issue in the Model S and the auto pilot-related crash from early March, have not helped Tesla stockholders’ optimism surrounding the company.

Source: The Wall Street Journal, MarketWatch