Markets

What would happen to Tesla without Elon Musk at the helm?

What would happen to Tesla without Elon Musk at the helm?”

Musk will have to explain to a court why he announced on social media that he had investors who would take Tesla private at a share price of $420. "As a result of Musk's false and misleading statements and material omissions, investors who purchased Tesla stock in the period after the false and misleading statements but before accurate information was made known to the market were harmed", said the suit, which was filed Thursday. They are also seeking to prohibit him from heading any other publicly traded firm in the future.

It says Musk failed to communicate with members of the Saudi Sovereign Wealth fund, which had recently invested in Tesla and was touted as a potential source of funds to go private, and had likewise not discussed the proposal with any funding source or existing investors before sending the "funding secured" tweet and several follow-ups on August 7.

Tesla might be able to thrive without Musk if it could replace him with a more experienced automotive or technology veteran who has been at the helm of a profitable company, said Karl Brauer, executive publisher of Kelley Blue Book.

This unjustified action by the SEC leaves me deeply saddened and disappointed.

Bill Cosby sentenced to 3 to 10 years in prison
The classification means that Cosby must undergo monthly counseling for the rest of his life and report quarterly to authorities. Montgomery County District Attorney Kevin Steele rejected the notion that "age, infirmity, should somehow equate to mercy".

"His ego is so clearly tied to the company, so what would be best for Tesla's investors would be for him to realize the company is more important than his ego", Munster said.

Aside from the drama surrounding Musk's tweet saying Tesla may go private - and his decision less than three weeks later to stay public - the company has been grappling with the departure of several top executives, most recently its vice presidents of global supply chain management and worldwide finance.

Daniel Sparks owns shares of Tesla. "The problem for investors is that an investment in Tesla is an investment in Elon Musk", he said.

In its lawsuit, the SEC said Musk "calculated the $420 price per share based on a 20 percent premium over that day's closing share price because he thought 20 percent was a "standard premium" in going-private transactions". We think this is an overreaction and believe there is a 50-50 chance Musk remains CEO after this SEC matter is resolved and an even greater chance he remains involved somehow with Tesla in any case. Breakingviews cleverly posits that a Musk-less Tesla will reveal the true value of the innovative but financially challenged company. Tesla's board, which includes Musk's brother Kimbal Musk, is closely aligned with the CEO.

Plane passengers bled from their noses, ears on Jet Airways flight
India's Ministry of Civil Aviation said in a tweet it had sought an "immediate report" from official agencies. Jet Airways "posted a loss of about $189 million for the April-June quarter", the wire service said.

In the note, Tesla analyst Ryan Brinkman wrote: "We see a number of negative implications for Tesla shares stemming from this latest development, the most significant of which relates to the SEC's request that the court prohibit Mr. Musk from serving as an officer or director of any public company, including Tesla", which would cause the company's share price to drop.

Analysts and experts told CNN the SEC lawsuit brings a scourge of uncertainties to Tesla (TSLA), which is already grappling with intense business pressure. The company may need to find more than US$1-billion to repay convertible debts that come due in the next few months.

Shares were last down 10.8% at $274.17 in trading before the bell in NY, which would wipe about $6 billion off Tesla's market value.

Florence hovers over coastal states, raising fears of epic flooding
Florence's top sustained winds have weakened to 50mph (80km/h) but it is projected to bring further catastrophic flash flooding. It said it was located about 60 miles west of Myrtle Beach, South Carolina, and forecasters predicted a slow westward march.



Like this

Latest


28 September 2018
Christine Blasey Ford's lawyers say they paid for polygraph test
Associated Press writers Kevin Freking, Mary Clare Jalonick, Padmananda Rama, Matthew Daly, Julie Pace and AP photographers J. Kavanaugh replied that he doesn't even know Swetnick and that her accusations are "from the Twilight Zone".

26 September 2018
Paul Pogba wants return to Italian club Juventus
He has indicated privately he will not look to force a transfer in January but will reassess his options at the end of the season. We had the personality to take penalties and play the way we did.

25 September 2018
ABC boss Michelle Guthrie ousted from role as managing director
Faine, who has been with the ABC since 1989, also said he had confronted Ms Guthrie about why she was not the staff's "champion". Guthrie, a lawyer who ran Star TV in Hong Kong and then worked at Google , came to the ABC in May 2016 to replace Mark Scott.

22 September 2018
SpaceX to announce private moon flight passenger
He also desires to take the artists with him to convert the entire trip into an art project that will be known as #dearMoon . Musk also anticipates SpaceX's Starlink satellite system to be operational by then, which he said will aid in the broadcast.

22 September 2018
Ronaldo's sending off to be reviewed
German referee Felix Brych consulted with his assistant and opted to send the Portuguese star off. He continued: " A lot will depend on the referee's report as well ".

21 September 2018
Mark Hughes vows Saints can worry Liverpool without loan star Danny Ings
Having let a 3-0 lead slip at Sevilla last season, Lennon says Tuesday's win over PSG proved Liverpool are on another level this campaign.

20 September 2018
Indian cabinet clears ordinance to make triple talaq penal offence
Between January 2018 to August. the Parliament sessions were a washout because of which the Bill was not tabled in Parliament. Others, like neighbours, can not lodge an FIR to prevent misuse of the proposed law.

20 September 2018
Jose Mourinho doesn't trust Marcus Rashford
However, he can not be accused of downing tools and, with their star man in this kind of form, United are a better team. Yet some fans aren't sure of our Champions League progress.

18 September 2018
SpaceX will send Japanese billionaire and guests to the Moon
Maezawa, whose net worth is $2.3 billion, is the founder and CEO of Japan's largest e-commerce company Start Today Co. Musk said the billionaire will pay "a lot of money" for the lunar orbit but he declined to disclose the exact amount.

17 September 2018
Florence: Wilmington resurfaces after landfall, now bracing for flooding and no power
Wind gusts paired with historic rainfall totals brought down trees in almost every area of the Cape Fear region. ET update that Florence is now a Category 2 storm, but it noted that the storm is quite large in diameter.



Recommended