Tesla CEO Elon Musk Claims That New York Times Costed Them $100 Million In Value

Posted Feb 26, 2013

When Tesla Motors sent the New York Times a Tesla Model S to test out, editor John Broder gave it a negative review.  Broder claimed that the Model S died on him when driving in cold weather along the East Coast and had to be loaded onto a flatbed truck.  Getting a negative review from the New York Times is obviously a bad thing.  Instead of apologizing, Tesla Motors CEO Elon Musk decided to argue that Broder’s claims were invalid and false.  Then he published Broder’s driver logs to the public.

Over the weekend, Musk interviewed with Bloomberg and said that the debacle costed him $100 million in company value.  ?We did actually get a lot of cancellations (probably a few hundred) as a result of the New York Times article,? stated Musk in the interview. ?It probably affected us to the tune of tens of millions, to the order of $100 million, so it?s not trivial, [but] I would say that refers more to the valuation of the company.?  Musk said that the Model S gets more attention every quarter, but the media conflict may slow down the growth of the company.

Below is the Bloomberg interview: