Tesla Stock Dives 14% As Investors Urge Musk To Make Deal
Mike Sanders / 6 years ago
Tesla Stock Dives 14% As Investors Urge Musk To Make Deal
Elon Musk is currently facing what could potentially be the biggest challenge he has ever had in business. Earlier this week it was reported how the SEC (security exchange committee) in America had begun legal action against the Tesla head. Following an investigation into the way he conducted himself during the ‘taking Tesla private’ affair, put simply, they want to remove him as head of the company and ban him from running any company.
Pressure will be increased further on him, however, as in a report via the SeattleTimes, since the SEC news broke, the Tesla share price has dived by around 14%.
Pressure Mounting
In fairness, it would appear that many people are losing patience with Elon Musk. He is certainly an interesting figure, but his active engagement in social media has often been very ill-advised. At this point, it’s hard to say whether he’s doing the company more harm than good. With such a huge share price drop, the pressure is going to increase on him either further.
What Can He Do?
Well, the thing is, the SEC has a very good case against him. It was exceptionally irresponsible of Elon Musk to announce the news of the potential purchase of Tesla (taking it private) on Twitter. In addition, he has given them more than enough ammunition to show his actions have affected the company negatively.
Tesla investors are reportedly urging him to make a deal. Personally, I think it might be the only option he has. He could end up fighting a losing battle here otherwise!
What do you think? – Let us know in the comments!
