The Tesla Twitter Turmoil Continues

The Tesla Twitter Turmoil Continues

On Tuesday, Elon Musk decided to take to Twitter regarding his alleged plans for Tesla’s future, but it didn’t end as planned. After making promises he most likely can’t keep, he managed to turn investors, the Tesla board, and the SEC against him.

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  • Musk tweeted that he was thinking of taking Tesla private which initially saw the company stock soar.

  • Not everyone is convinced that he was telling the truth and as questions about the situation were raised, the stock turned for the worse.

  • Now, the SEC is coming after him and the Tesla board wants Musk to recuse himself.

When information that a Saudi Arabian Investment Fund had bought 3-5 percent of Tesla’s shares were published, Musk decided to comment on the situation himself. Unfortunately, the result wasn’t what he had expected.

“Am considering taking Tesla private at $420. Funding secured.”

At first, the Tesla stock rallied by more than 11 percent in a matter of hours, but then something happened.

As analysts started asking questions about the validity of the statement. a butterfly effect of questions was initiated. Had Musk actually secured funding or was he tweeting on emotions? And if he didn’t have the funding, what would happen next?

An Investigation Is Coming

On Wednesday, the SEC announced that they had looked into the situation and that they were planning an investigation. If Musk didn’t have the funding he could risk being charged with market manipulation. At this point, investors started losing faith in the electric car manufacturer CEO and the stock started plummeting.

For the first 48 hours, no one at Tesla commented on the situation but on Thursday, the Tesla board finally announced that they were going to look into proceeding with a plan to take the company private. However, they also asked Elon Musk to recuse himself before the meetings that are set to be held next week.

Note: Musk still hasn’t commented on the situation which is only adding fuel to the fire.

Tesla shares are down almost 10 percent since Tuesday’s high. 

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