ibusinesslines.com
ibusinesslines.com November 16, 2018


The SEC Is Intensifying Its Probe of Tesla

12 August 2018, 12:02 | Kelvin Horton

Elon Musk solarcity tesla spaceXMore

Elon Musk solarcity tesla spaceX

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

Where to see the last partial solar eclipse of 2018
In case of a total lunar eclipse, Earth comes between the Sun and Moon's path, and blocks sunlight from reaching the satellite. Just over a year ago, millions across North America were anxiously awaiting the " Great American Solar Eclipse " of August 21.

Nintendo Switch Online release date just got narrowed down
There will also be retro love as well for members, including the original NES version of The Legend of Zelda, Super Mario Bros . Expect to hear more about Nintendo Switch Online soon in the coming weeks, probably first at Gamescom which is 15 days away.

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.

Paul Pogba Named Manchester United Captain - Starting XI V Leicester Confirmed
José Mourinho started the season with a win but still found time to aim a dig at Ed Woodward over his failure to sign more players in the transfer window.

Wrong Tommy Fleetwood gets paid over $150,000 for British Open
That said, should his winnings ever go missing again in the future, Fleetwood will know the first place to look. They [the European Tour] are looking into it and I'm sure they'll feel pretty bad about it.

Hundreds of flights cancelled across Europe in Ryanair strike
But some people took to Twitter to complain at how Ryanair handled the debacle after their flights were canceled. Another customer said she would miss work meetings and a doctor's appointment due to a cancelled flight.

Gary Woodland matches 36-hole scoring record at PGA Championship
Finau, who double bogeyed No. 6 after his five birdies to start, did not have a par in the second round until the 10th hole. He came up short of the green, chipped too strong and made bogey for a 64, leaving him one shot out of the lead Friday.