Published: Tue, August 14, 2018
Finance | By Gustavo Carr

Timeline: Main events in Tesla's history as a public company

Timeline: Main events in Tesla's history as a public company

The complaints allege Musk looked to mislead investors by claiming on Twitter that he secured funding to take Tesla private. The remark set off a frenzy of trading in Tesla shares, even as investors were struggling to discern whether the tweet was legitimate and what precisely it meant.

Speculation had been swirling around Tesla and Musk's disclosures amid the yearlong struggle the company had ramping up production of the Model 3 sedan, with Musk fielding a question on the company's latest earnings call about whether a notice from a regulator was keeping him from being able to raise more capital.

Tesla and its billionaire chief Elon Musk were hit by two new lawsuits yesterday, over claims that Musk's surprise proposal to take the company private was scheme created to target short-sellers of Tesla stock. Personally, I believe taking the company private might do for Tesla what being privately held is doing for SpaceX. However, a new report claims that Musk is still working to bring in sufficient financial support for this transaction which is expected to cost at least $50 billion.

Short sellers are investors who bet against a company and look for its stock price to go down.

"This hasn't scared the large players in the market at all", said Ihor Dusaniwsky, head of research at S3 in NY. Mr. Musk also said he had secured funding for the proposal, he provided no details.

"If there is no such agreement, require a statement by 5:30 pm".

More news: 'Christopher Robin' Delivers Lowest Disney Debut In Past 2 Years

Short-selling involves borrowing overpriced shares in the belief that their price will decline, so they can be sold and then bought back at a lower price.

Cheddar has reached out to Tesla for comment. "Our job", he said, is to protect investors.

It is not the first time when Elon Musk is in News for such news.

Additionally, besides acquiring a stake of just below five per cent in Tesla, the sovereign wealth fund has poured tens of billions of dollars into technology investments, including $45 billion in SoftBank Group Corp's Vision Fund over five years.

Furthermore, JP Morgan Chase, Goldman Sachs, Morgan Stanley and Citigroup are looking at different ways a deal might be structured, banking industry sources say. However, a deal of its nature would make it the biggest one in more than a decade.

Like this: