Friday August 10, 2018

Tesla's Board Seeking More Information on Musk's Financing Plan

It's been all over the financial news regarding Elon Musk's recent tweet about taking Tesla private at $420 a share and now his own board may ask him to put up or shut up. This move follows reports that the SEC is looking into his tweets. Personally, I believe taking the company private might do for Tesla what being privately held is doing for SpaceX. However, he has to get his act together and make sure he doesn't get into trouble with the SEC. This one is going to get interesting.

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Taking Tesla private would remove the pressure from Musk coming from hedge funds betting that the company’s stock will drop given its production issues and negative cash flow, as well as the glare of Wall Street that comes with reporting quarterly earnings publicly.