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.
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.
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!
More in Business
-
Ashton Kutcher’s Lucrative Business Ventures
Ashton Kutcher, a name that resonates with the silver screen’s allure, has emerged as a master of diverse talents, not confined...
December 8, 2023 -
Why American Consumers Are Falling Behind on COVID-Era Debt
When the world was grappling with the health crisis brought on by COVID-19, the U.S. economy faced an equally formidable challenge:...
November 27, 2023 -
Dr Dre and Ex-Wife Nicole Young Finalise $100m Divorce Settlement
After months of legal proceedings, Dr Dre, the legendary rapper, producer, and businessman, officially brought his tumultuous divorce from ex-wife Nicole...
November 22, 2023 -
5 Tell-Tale Signs That It Is Time to Say Goodbye to Your Current Job
Are you feeling like your job is more like a ball and chain than a fulfilling career? The daily grind, the...
November 19, 2023 -
WWE Signs $1.4 Billion Broadcasting Contract for SmackDown
In an explosive turn of events, World Wrestling Entertainment (WWE) has just unleashed some earth-shattering news for its legions of fans....
November 9, 2023 -
Navigating the Mortgage Maze as Interest Rates Take a Historic Leap
The U.S. housing market is nothing short of a dynamic entity. It evolves, reacts, and sometimes, just like the current real-estate...
November 3, 2023 -
Celebrity Couples Where the Woman Has a Higher Net Worth
In a world where gender roles and financial dynamics constantly shift, it’s not unusual to find celebrity couples where the woman...
October 27, 2023 -
Why the Gender Pay Gap Could Be Worsening
Picture this: Two college students, Alex and Charlie. Both are bright, have the same interests, and are ready to embrace the...
October 19, 2023 -
JC Penney’s Remarkable $1 Billion Revival Plan
In a remarkable turnaround, JC Penney unveiled a bold $1 billion revival plan, breathing new life into a brand that faced...
October 12, 2023
You must be logged in to post a comment Login