SEC Seeks to Ban Musk From Running Public Company

30 September, 2018, 01:31 | Author: Salvatore Jensen
  • Elon Musk smoking weed on

The stock could fall further, whether or not the Securities and Exchange Commission succeeds in forcing him out as chairman and CEO.

There were signs of progress in the months after that, and investors cheered in June after Musk said Tesla was about to hit its goal of making 5,000 Model 3s a week.

In the end, Musk decided it was best for Tesla to stay public and focus on executing its plans for the Model 3 and other electric vehicles. They still value the company at around $45 billion, about $2 billion less than General Motors and significantly more than rivals like Ford and Fiat Chrysler.

"Tesla is going to blow the sales numbers out of the water, but Elon's stress and meltdowns over these past months have had a real impact on the company", he said.

Musk, 47, is the public face of Tesla and losing him would be a big blow for the money-losing auto maker which has a market value of more than $50 billion, chiefly because of investors' belief in Musk's leadership.

Tesla, whose shares are off 16% this year, still is outperforming Ford (down 25%) and GM (off 18%). Before the news Thursday, the price was at $307. It fetches under seven times projected 2018 earnings of $1.35 a share and yields 6.6%. The agency is also seeking civil penalties.

Musk tweeted the information to his 22 million followers without discussing it with Nasdaq, the index on which Tesla stock is traded.




The SEC sued Tesla CEO Elon Musk on Thursday, saying he made "false and misleading" statements in August about possibly taking Tesla private.

Barclays has warned that if Musk is forced to leave, it will send Tesla shares down another $130 - or 48 per cent from their current level.

That's a 44 per cent decline from where the shares ended just hours after Musk tweeted over the summer that he had secured funding for a buyout.

Early trading Friday has shares down about 12%, as Wall Street analysts begin to digest the possible repressions of such a lawsuit and disseminate that research to their clients. Analysts at Citigroup view both scenarios as weighing on Tesla shares.

Musk pulled out of a settlement with the SEC in which he and Tesla would have had to pay a nominal fine, CNBC reported, citing sources it didn't identify. He has a $US195 price target for the stock.

"Uncertainty around the future leadership at Tesla may impact its ability to raise additional capital", Spak wrote.

Hey you! We want to know what you think about The Outline (and you can win some cool swag too). Tesla has been profitable in only two quarters in the past decade.

Recommended:



Popular

A look at what the FBI's Kavanaugh investigation will entail
Agents should get support from the Judiciary Committee for rapid immunity and subpoena decisions, he said. Moments later, a visibly troubled Flake changed course, huddled with Democratic colleague and friend Sen.

Trump hints at military response to Venezuela's decline
The Venezuela leader also spoke of the recent media report about a coup attempt plan against his socialist government. He tweeted a photo of himself aboard the plane, saying he meant to "bring the truth" about Venezuela to the U.N.

GOP governors want Senate to delay vote on Kavanaugh
She's as much of a victim as you are. "We are now in a place where it's not about whether or not Judge Kavanaugh is qualified". Brett Kavanaugh was nominated by President Donald Trump to fill Justice Anthony Kennedy's seat on the Supreme court in July.

Man Utd stars 'angry and frustrated' at Mourinho
Then, the Brazil global featured on the video posted on social media that has landed Pogba in trouble with Mourinho . Tune in next week to see the latest twist in the Pogba-Mourinho soap opera. "We've see what Pogba is as a player".

Erik Spoelstra Pushing Miami Heat to Trade for Jimmy Butler
Butler, 29, turned down a contract extension from the Timberwolves over the summer. Phoenix will get involved if they can return a point guard in a three-team trade.

Rod Rosenstein Has Verbally Resigned To John Kelly
Some news media reported on Monday that Rosenstein would soon leave his post , prompting Trump, in NY for the U.N. General Assembly, to say he would meet with the second-most powerful Justice Department official on Thursday.

Instagram Founders Leaving Facebook After Internal Clashing
A report claims the pair left over disagreements with Facebook CEO Mark Zuckerberg . " Facebook officials, including Mr. Instagram largely operated as a standalone company within Facebook , and now some of that autonomy could disappear.

Ranking potential trade packages for Jimmy Butler
The Timberwolves held their media day on Monday and Butler was excused from participating, but he did take his physical. Only time will tell whether or not the Heat are able to make the most attractive offer and get the deal one.

Anti-Semitism remains talking point at 2018 Labour conference
At a Parliamentary Labour Party event on the fringe of the conference, opinions were split on a second referendum. Labour backed the "remain" side during the 2016 referendum but Corbyn's support was lukewarm.

Iran Vows Revenge on Perpetrators of Terrorist Attack, Even as Confusion Mounts
Iran's Intelligence Ministry said some 22 people had been arrested in connection with the attack. Iranian officials have said they believed the gunmen had links to an "Ahvazi terrorist group".