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From Bad to Worse: How Tesla and Musk are in a Slippery Fall with Shares Plummeting to Their Lowest in 2 Years

It seems like things are only taking a turn for the worst when it comes to any news regarding Tesla and its CEO Elon Musk. This after the company’s shares experienced their worst plummet in two years after a recent interview by the New York Times highlighted some of the company’s worst struggles in recent times.

Since CEO Musk posted on Twitter that he was planning to privatize Tesla, the company has experienced its worst plummet in stocks in over 2 years

Dipping stocks

In fact, the company well-known for its electric cars experienced an 8.9 percent dip in its stock after the article’s release. This is the worst it’s ever gotten for the company since June 2016 when it experienced a 10.45 percent dip.

Additionally in the bear-market domain, Tesla’s stock experienced a 21 percent dip after the initial 52-week high came to an end.

Since 2017, Tesla has not had it easy, experiencing a 13 percent dip which came to its worst the previous week.

Ironically, ever since Musk posted on Twitter that he was planning to privatize the company, Tesla stocks have fallen by 16.1 percent, clearly showing the negative reception that the announcement brought to the company.

SEC investigations

Moreover, the SEC has been conducting investigations into the tweet, and has even directed subpoenas to the company so as to collect more information.

In continuation of the story published by the New York Times, Musk highlighted that the previous year was one that was particularly difficult and ‘excruciating’ for his company and his career.

As a matter of fact, Musk and a number of the company’s board officials have organized a meeting with the SEC this coming week so as to discuss matters regarding the current state of the company.

If that’s not enough, sources close to company officials have stated that Tesla’s board is concerned about Musk’s use of Ambien and other recreational drugs to help him sleep. There are even rumors that this drug abuse is what could be causing the controversial tweets by Musk.

The SEC has been conducting thorough investigations on the company after Musk reported the plan to privatize the company at $420 per share

 

Privatization looking bleak

Indeed, on August 7th, Musk had tweeted that he had gotten funding for the privatization of Tesla at $420 per share. Such a bold statement could, in fact, be against the rules and regulations of SEC.

Additionally, the SEC is looking into the tweet and trying to determine whether there was a motive behind it targeting those who were unfavorable against Tesla’s privatization. In fact, the agency is currently grilling the board to share how much information the CEO had revealed to them before the tweet.

Indeed, the effects were felt by those betting against Tesla; with a mark-to-market loss of $1.3 billion being recorded last week according to analysis carried out by S3 Partners firm.

If that’s not enough, one of the top technical analysts, Mr. Piper Jaffray’s predicts that there will be more trouble heading Tesla’s way.

Analysts predict the worst

According to Jaffray’s, current support for the shares is sitting at $285, and if it fails to hold on to this, it means that the shares will fall back to the range that they were between 2013 and 2016. This roughly between $183-$285.

Additionally, the company that Musk had mentioned was in the cogs to provide financial backing for the buyout, was actually targeting Tesla’s rival electric auto producer’s Lucid Motors, rather than Musk’s company!

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