Tesla, Elon Musk, Private, Dailycarblog.com
Tesla Going Private? What Is The Truth Behind The Rumours?
Features

Tesla, in the last couple of days, has been in the headlines for mixed reasons. On the one hand, there is the tweet that caused a ripple online – the announcement by its leader Elon Musk declaring the need to make the company public and then for the response that came from purported investors after that announcement was made.

In a tweet, Musk named Goldman Sachs and Silver Lake as the company’s financial advisors in the take-private deal. “I’m excited to work with Silver Lake and Goldman Sachs as financial advisors,” part of the tweet read. He also named other organizations as legal advisors.

Following that tweet, Silver Lake, as reported by Reuters, made it known that they were not in it for investment and that the firm was not acting in official capacity. As such, it is deriving no financial benefit. The other issue that left investors clear that the Tesla leader needed to clear matters further was the announcement that the organization had received all the funding it needed to go private. Musk has said earlier that meetings held with the Saudi Arabian sovereign wealth fund had left no doubt that they were financially ready for a deal to privatize Tesla. The fund had reportedly taken up 5% of the company’s stock through public stock acquisition already.

SEC not having it

The SEC was not very happy with Musk’s disclosure, especially when it became clear that the organization may not have clinched investment deals as was purported. According to SEC, publicly traded companies are not supposed to reveal information that could manipulate the price of its stocks especially if they have no intention of following up with the deal that could alter ownership. While defending his decision to make the news public, Musk said that the organization was yet to finalize this deal and so it would be premature to provide full details of the deal. He noted that the information would be provided in due time, but in the meantime, he felt the need to alert all shareholders, hence the tweet. The board of Tesla has reportedly met several times to look into the process, and those familiar with decision making at this level think Musk may be asked to recuse himself from the decision. While it is not exactly a need-a-lawyer-for-family-court kind of matter in any way, Musk may need to check that his private life does not interfere with his CEO-ing. Just a few days ago, artist Azalea Banks took to twitter to complain about Musk’s popstar girlfriend, Grimes and her lack of commitment to their could-have-been collaboration. In her usual fashion, Banks is dragging Musk and making lots of noise. Well, this may not be the ideal time for such a mess, is it? Following the announcement, Tesla shares fluctuated all day but they ended up going up fractionally. As one of the few organizations driving the climate change talk and providing a greener solution, Tesla is surrounded by too much drama and the media is not helping much. As Musk noted in his statement, going private would accelerate decision making and enable the company to operate at its best.  Tesla, Elon Musk, Private, Dailycarblog.com
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