Tesla’s Stock Tumbles After Elon Musk’s Failed Attempt To Go Private
Tesla’s stock stumbled and bumbled early Monday morning following CEO Elon Musk’s announcement over the weekend that the electric automaker is scuttling plans to privatize after years of being publicly traded.
Shares of the Silicon Valley company fell as much as 4 percent in early trading Monday as Tesla must still deal with the fallout from Musk’s Twitter behavior. Tesla abandoned the short-lived plan Saturday amid an ongoing federal investigation into Musk’s initial announcement.
The company was tossed into disarray after Musk told his Twitter followers in an Aug. 7 post that he secured “funding” to take the company off the stock exchange at $420 per share. His tweet followed a report suggesting Saudi Arabia became a major Tesla shareholder earlier in 2018 and prompted a full-blown Securities and Exchange Commission investigation into his claim.
Some analysts suggest the incident shows it’s about time Tesla make some changes.
“We are hopeful that … the past 17 days will lead the Board down the path to bringing on a more operational CEO or at a minimum a COO,” Cowen and Co analysts said Monday in a note to clients. (RELATED: Here’s How Musk’s Obsession With Tesla’s Critics Nearly Torpedoed His Company)
Tesla’s shares have fallen nearly 15 percent from a peak when Musk tweeted his intention to move forward on taking the company private. The company’s early morning trading Monday initially fell more than 5 percent in European and pre-market trading in New York.
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