ibusinesslines.com
ibusinesslines.com September 23, 2018


The SEC Is Intensifying Its Probe of Tesla

12 August 2018, 12:02 | Kelvin Horton

Investor's Corner Tesla board to formally review Elon Musk’s plan to go private TSLA reacts after hours

Investor's Corner					Tesla board to formally review Elon Musk’s plan to go private TSLA reacts after hours

Telling Musk, Tesla's founder and largest shareholder, to go his own way is an unusual move for any board - and suggests that their interests are separate. Tesla is and probably always will be a company that will remain underneath the spotlight, so nearly any actions taken by the company itself or Elon Musk as an individual or CEO will have adverse effects on its stock price.

Tesla's $1.8 billion August 2025 junk bond fell half a point to be bid at 90.875 cents on the dollar. If the money he claimed to have doesn't follow as Tesla's privatization takes shape, he might face civil or criminal charges for manipulating Tesla stock price by spreading misleading information to investors.

"The short-sellers right now might be smelling blood in the water", he added. Musk said via Twitter on Tuesday that the deal was contingent on a shareholder vote but that "investor support is confirmed". SEC enforcement attorneys in San Francisco have begun gathering information on Tesla; however, this could end up leading to nothing.

"I do not know how he thinks that's going to work", said Stephen Diamond, who teaches securities law and corporate governance at Santa Clara University's School of Law.

Tesla hasn't disclosed any sources of financing for the deal and no one has stepped forward publicly to say they're backing the plan.

Tesla has many mom-and-pop investors.

Nevertheless, this quarter cycle decision making would affect the company only for short term but not for long term purposes and according to Elson Musk, this long term decision is the reason behind every successful company.


Some people took it as a joke, but most people believed him.

Just last week, he revealed he had been working 110 hours a week to deliver on short-term promises he had made to Wall Street, a load he traced to his boorish behavior toward two analysts earlier this year.

The agency on Wednesday asked Tesla whether one of CEO Elon Musk's tweets about the possibility of taking the company private was truthful, The Wall Street Journal reported.

Tesla said on Wednesday the discussions had addressed how to fund such a deal but gave no details.

The strong rebuke from the board hinted strongly that the idea of taking Tesla private at $420 a share would be engineered by Musk - and not by the board.

According to UK's the Guardian, this new valuation would float his company from its current stock market value of $63.8 billion to a whopping $82 billion, a near $20 billion inflation. Tesla also would likely need to borrow billions more to help pay for its ambitious plans of its electric vehicle line and its battery manufacturing plants. And most of the perceived advantages of being a public company - higher profile, greater brand awareness, better access to capital - don't apply to Musk and Tesla.



Other News

Trending Now

Kerala Rains: 22 Killed in Landslide Due to Flood, Train Services Disrupted
At 12.30 p.m. on Thursday, the water level crossed 2,399 metres, and one of the shutters was opened after a gap of 26 years. He urged people to be vigilant since this will lead to a rise in the water levels of Periyar river and its tributaries.

EPL: Manchester United vs Leicester City
United kicked off the new Premier League campaign last night with a 2-1 win over Leicester . I think we are a lot more used to those high-pressure situations".

Trump Calls Omarosa a ‘Lowlife’ in Response to Book Claims
Manigault Newman went on to become Assistant to the President and Director of Communications for the Office of Public Liaison. White House press secretary Sarah Huckabee Sanders criticized Unhinged as "riddled with lies and false accusations".

England ace Chris Woakes boasts absurdly low Test average at Lord's
The second session will be vital with India still looking to get early wickets to keep England's first-innings lead to a minimum. That meant England were on 137 for five, already 22 runs ahead of India's first-innings total of 107.

Bill Schuette and Gretchen Whitmer Win Michigan Gubernatorial Primary Races
Whitmer also went after Bill Schuette and the eight years MI has spent with a Republican governor in office. The 68-year-old has served 14 years in the Kansas Senate and is the top Democrat on the budget committee.

Sarri's Chelsea too good for Huddersfield
Huddersfield deliver a corner, it's flicked on to Mounie whose header smacks off the inside of the upright and bounces to safety. This time Rudiger flicks on the delivery to set up Alonso but his acrobatic effort smashes against the woodwork.

Bitcoin is the Best House in a Tough Market: Fundstrat's Tom Lee
Looking at the chart , the current price action is indicating a short-term recovery in bitcoin above $6,400. In the past month, bitcoin has been the leading performer amongst major cryptocurrencies in the market.