SEC probes Tesla over Musk's tweet on taking company private

09 August, 2018, 09:07 | Author: Sheri Evans
  • Flags fly over the Tesla Inc. Gigafactory 2 which is also known as RiverBend a joint venture with Panasonic to produce solar panels and roof tiles in Buffalo New York

As Tesla's board of directors rallied Wednesday behind chief Elon Musk's extraordinary push to take the all-electric automaker private, a growing contingent of investors, analysts and former regulators voiced their doubts that the deal would ever take off. In his first tweet he said funding was secured but provided no details. However, it certainly looks like his messages on social media have had direct consequences on Elon Musk's personal fortune, and on his company's stock price: Tesla shares started Tuesday trading at about $340 and went as high as $387.

'Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term, ' Musk wrote in a letter to employees.

Tesla directors have said they knew about Elon Musk's surprise proposal to privatise the money-losing auto maker before he tweeted about it and have met several times in the past week to discuss the proposal.

If the company went private, employees and shareholders would be given an opportunity to sell or buy their stock approximately every six months.

Pro-Assad media blames Israel's Mossad for assassination of chemical weapons chief
The Britain-based watchdog group said the man had close ties with Syrian President Bashar al-Assad and Iran. A auto explosion took the life of Aziz Asber , the man who chaired the chemical weapons plant in Syria.

"Just because" Musk wants it at $420 "doesn't mean that there aren't other people who might be willing to come in with another transaction that would be more beneficial to shareholders", Pitt said.

The board members said they were "taking the appropriate next steps" to evaluate the proposal.

If we turn to the Street in general, we can see that Wall Street has a neutral point of view on Tesla, with TipRanks analytics exhibiting TSLA as a Hold.

On Wednesday, Breitbart News' Economics and Finance editor John Carney expressed doubts about plans to take Tesla private, suggesting the move may face insurmountable legal headwinds.

Brian France, NASCAR chairman, arrested for DWI and criminal possession of oxycodone
During the stop, we're told officers suspected France was intoxicated and conducted a field sobriety test. which France bombed. France, founded NASCAR and his father, Bill France Jr ., was in charge of the league before the youngest France took over.

Musk's plan for a price of $420 a share would value a deal at more than $70 billion. That report had already partly lifted Tesla's stock.

There still are near-term execution risks around ramping up Model 3 production and the ability to generate cash, Jonas believes. Tesla was trading around $300 per share in April 2017 when the talks reportedly fell through.

China's Tencent Holdings Ltd, which took a 5 percent stake in Tesla a year ago, could also be a possible partner.

Despite the board's statement, it was clear early Wednesday that the euphoria had worn off over Musk's bold claim that he had the funding secured to take the electric-car maker private.

Google Pixel 3 release date revealed in extraordinary leak
New adaptive battery and display features won't be immediately noticeable, but could make a big difference over time. Be sure to check back for our full impressions of Android 9 Pie later this week.

They did not include Mr Musk, his brother Kimbal Musk, and Steve Jurvetson, a venture capitalist.

Recommended:



Popular

SpaceX relaunches the final Falcon 9 rocket design
If successful, that innovation over time promises to lower the cost of launches that SpaceX now advertises online for $62 million. SpaceX founder and CEO Elon Musk has advertised the Falcon 9 Block 5 as "the most reliable rocket ever built".

Police Arrest, Detain Sacked DSS DG Lawal Daura
Seiyefa who replaces th sacked DG, Lawal Musa Daura, was in the villa ostensibly to receive briefing from the Acting President. Aisha Buhari has asked politicians to operate within the guidelines of the constitution of the Federal Republic of Nigeria.

Wild brawl at nail salon
Neighbors are protesting an East Flatbush nail salon after police arrested a worker and a customer accused of brawling there. The video was filmed and uploaded to Facebook by one of the customers who was in the salon during the incident.

Saudi suspends flights to Canada ahead of Hajj
Canadian exports to Saudi Arabia totaled about $1.12 billion in 2017, or 0.2 percent of the total value of Canadian exports. That caused significant backlash by those concerned about Saudi Arabia's human rights record .

Trump firm as USA set to reimpose sanctions on Iran
The mechanism stops European companies from complying with the USA sanctions unless they have authorization from the Commission. US sanctions had been eased by the Obama administration under the terms of the landmark 2015 Iran nuclear deal.

Fatigued Murray withdraws from Citi Open, Rogers Cup
Meanwhile, 10th-seeded Greek teen Stefanos Tsitsipas took one of the biggest victories of his young career with his 6-3, 6-4 upset of Belgian third seed David Goffin .

Alisson gets first Liverpool game, forward three re-united v Napoli
Liverpool boss Jurgen Klopp hopes to find a solution to his defensive headache after being left with two fit centre-backs. I am very happy here", Fekir told Lyon's in-house TV station after returning to training following a post-World Cup break.

Apple Pulls Five InfoWars Podcasts From iTunes Over 'Hate Speech'
Facebook also put Jones into a penalty box, preventing him from posting any updates to the service for 30 days. In a statement , a YouTube spokesperson said the decision follows prior warnings to Jones about his content.

Red tide cited after manatees, thousands of fish found dead in Florida
Dolphins, manatees, sea turtles and even a whale shark have washed ashore in southern Florida. Red tide is a naturally-occurring toxic algae that often occurs along florida's gulf coast.

US pledges nearly US$300m security funding for Southeast Asia
This pledge from the United States comes at a time when the Indo-Pacific tirade between the USA and China has intensified. These span a range of areas including terrorism, cyber security, climate change, irregular migrants and maritime matters.