Question

"Please can I get a feedback on this discussion post below" Can I get it in 2 hours please .thanks

Tesla is a company recently in the news for a conflict of interest between the SEC and the CEO Elon Musk due to an interest to bring the company private by the CEO who shared on Twitter his short term plans. Production issues, a number of layoffs and the increasing demand for the electric vehicles were expressed by the CEO as reasons to bring the company private that would allow the company to restructure its company internally. The company has since rescinded its position remaining as a public company. The SEC stated that it was swaying investors by stating that the company would do so when it reached a stock price of $420 forcing investors to make a decision or artificially driving the stock price to the sale price in order to bring the company private faster. Elon Musk has previously tweeted about its stock price in terms of its standing in the market however this is the first where the market has reacted to his tweets negatively. Possible solutions to the situation would be to address investors by other measures in addition to Twitter. Twitter being a social network for CEO’s to interact with customers and investors directly however a more formal approach might have been ideal in this situation.

Answer 1

I completely agree with the stand and the position in the discussion against the action of Elon Musk to tweet his intention to take Tesla private. In the post on Twitter Mr. Musk stated that “am considering taking Tesla private at $420. Funding secured”. In the replies he added that shareholders of the company can either sell their shares at $420 a piece or they can hold on to their shares and go private with the company.

This post by Mr. Musk was not an appropriate post and will be construed as giving the shareholders and investors of the company misleading information. Mr. Musk did not share any plans for the objective for taking the company private. Therefore, in all probability, the intention was to mislead the shareholder and investors and the objective was to push up the prices of Tesla’s stock.

Moreover such statements with regards to meaningful corporate events should be announced in formal settings like AGMs (annual general meetings), announcement of financial results and forward looking statements. Such statements should not be discussed in informal settings like social media and that too when proper base, groundwork and justification is missing.