Elon Musk Jokes About Tesla Bankruptcy After Nightmare Month

Tesla Inc.’s (TSLA) CEO Elon Musk has broken his silence on the electric automaker's latest troubles and the commentary surrounding it, joking in a series of tweets on April Fool’s day that the company is going bankrupt.

“Despite intense efforts to raise money, including a last-ditch mass sale of Easter Eggs, we are sad to report that Tesla has gone completely and totally bankrupt,” Musk wrote on Twitter. “So bankrupt, you can’t believe it.”

There are many chapters of bankruptcy and, as critics so rightly pointed out, Tesla has them *all*, including Chapter 14 and a half (the worst one).
— Elon Musk (@elonmusk) April 1, 2018

Another post appeared shortly after showing a photo of Musk seemingly unconscious, laying under a torn Tesla box on which “Bankwupt!" had been written with a black marker. The tweet was accompanied with the following message: “Elon was found passed out against a Tesla Model 3, surrounded by ‘Teslaquilla’ bottles, the tracks of dried tears still visible on his cheeks.”

Elon was found passed out against a Tesla Model 3, surrounded by "Teslaquilla" bottles, the tracks of dried tears still visible on his cheeks.
This is not a forward-looking statement, because, obviously, what's the point?
Happy New Month! pic.twitter.com/YcouvFz6Y1
— Elon Musk (@elonmusk) April 1, 2018

Musk’s lighthearted tweets appeared several days after John Thompson, chief investment officer of Vilas Capital, told Fortune that Tesla is "without any doubt" on "the verge of bankruptcy." That observation capped off the worst month for Tesla shares since 2010, the year the company first went public. The automaker's stock fell 22 percent in March, the steepest monthly drop since December 2010. (See also: Tesla 'On The Verge' of Bankruptcy: Vilas Capital.)

Thompson’s prediction was exacerbated by a similar warning from Moody’s Investors Service. The credit agency, citing the lackluster production rate of the Model 3, claimed that Tesla risked running out of cash by the end of the year. Moody’s downgraded the company’s credit rating further into junk status, pointing out that Tesla will need to raise more than $2 billion to stay afloat. The news sent the electric automakers heavily shorted bonds to all-time lows. (See also: Tesla Downgraded by Moody's Amid Model 3 Production Woes.)

March also saw Tesla’s autopilot semiautonomous driver-assistance system come under scrutiny when the company’s autopilot device was in use in a car that crashed in California on March 23 killing its driver.

On Friday, Tesla blamed the incident on the driver, claiming that he ignored several visual and audible warnings to put his hands on the steering wheel before the Model X vehicle he was driving hit a concrete barrier.

The National Transportation Safety Board (NTSB) wasn't impressed with Tesla's rapid response. “The NTSB is unhappy with the release of investigative information by Tesla,” Christopher O’Neil, an agency spokesman, said Sunday according to the Washington Post. “The NTSB is looking into all aspects of this crash including the driver’s previous concerns about the Autopilot.” Federal safety investigators plan to release a preliminary report in a few weeks.

The company also voluntarily recalled 123,000 Model S vehicles due to problems with the power steering component in the last week of March. (See also: Tesla's "Hyper-Automated" Assembly Line Could Be Its Downfall.)

Take the Next Step to Invest
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.