{"id":129022,"date":"2018-08-21T17:02:54","date_gmt":"2018-08-21T21:02:54","guid":{"rendered":"http:\/\/www.thedetroitbureau.com\/?p=129022"},"modified":"2018-08-21T17:38:09","modified_gmt":"2018-08-21T21:38:09","slug":"tesla-stock-rises-and-so-does-the-controversy-around-it","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2018\/08\/tesla-stock-rises-and-so-does-the-controversy-around-it\/","title":{"rendered":"Tesla Stock Rises and So Does the Controversy Around It"},"content":{"rendered":"
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Tesla CEO Elon Musk's plans to take the company private have it facing a class-action suit and 4.36% jump in its stock price.<\/figcaption><\/figure>\n

As the Saudi investment fund that Tesla CEO Elon Musk suggested could provide the funding necessary to take the EV maker private is in talks to invest in another EV maker \u2013\u00a0Lucid Motors \u2013 Tesla\u2019s stock shot up more than 3% early in the day.<\/p>\n

After taking a hit the last few days, the stock turnaround comes on news Morgan Stanley withdrew its rating on Tesla, suggesting that some sort of deal is in the works and the bank has agreed to help make it happen.<\/p>\n

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News Now!<\/figcaption><\/figure>\n

Goldman Sachs\u00a0also eliminated its coverage of Tesla stock last week then confirmed it was acting as a financial adviser to the company. Musk listed Goldman Sachs in the tweet as one of the financial advisers involved the potential deal to take the company private.<\/p>\n

The stock finished strongly today at $321.90, up 4.36%.<\/p>\n

(Lucid hunting for money from same Saudi investment fund as Tesla. <\/em>Click Here<\/a><\/span>\u00a0for the story.)<\/em><\/strong><\/p>\n

\"\"<\/a>
Biz reporter Liz Claman pushed Musk for answers about taking the company private.<\/figcaption><\/figure>\n

No day at Tesla is simple and today was no exception. The stock price jumped in spite of the news that PIF, the aforementioned Saudi investment fund, was potentially ready to drop a big money on Lucid as well as having a new class action suit filed against it.<\/p>\n

Bernstein Liebhard LLP, an investor rights law firm, filed a securities class action lawsuit \u201con behalf of those who purchased or acquired the securities of Tesla, Inc. (\u201cTesla\u201d or the \u201cCompany\u201d) (NASDAQ: TSLA) between August 7, 2018 and August 14, 2018.\u201d<\/p>\n

The lawsuit, which expands the class period asserted in recent lawsuits filed against the Company concerning Tesla\u2019s proposed \u201cgoing private transaction,\u201d seeks to recover Tesla shareholders\u2019 investment losses. The suit alleges that investors were harmed by Musk\u2019s tweet and that he knew the information he put out in the tweet wasn\u2019t truthful.<\/p>\n

The Securities and Exchange Commission is already investigating the actions by Musk, but the focus of the query \u2013\u00a0and the lawsuit \u2013\u00a0essentially settles on two words \u201cFunding secured.\u201d Musk said in his tweet about the plan to take the company private, he had the billions of dollars he would need to execute the plan in place \u2014\u00a0he did not, according to an interview he gave to The New York Times.<\/p>\n

According to a press release put out by the firm, potential litigants have until Oct. 9 to add their names to the pool. As Musk waits with bated breath to find out if the Saudis will buy in, it was determined that another Norway\u2019s $1 trillion wealth fund could remain an investor in Tesla if it does go private.<\/p>\n

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Tesla stock finished today 4.36% on a mixed bag of news.<\/figcaption><\/figure>\n

Typically, according to\u00a0Trond Grande, deputy CEO of the Norwegian fund, it doesn\u2019t remain in an investment that goes from public to private; however, rules regulating the fund set by the Norwegian Finance Ministry and parliament do allow it to stay on in a listed company that goes private.<\/p>\n

(Musk, Tesla board move forward with\u00a0<\/em><\/strong>privatization plan.\u00a0<\/em>Click Here<\/a><\/span>\u00a0for the story.)<\/em><\/strong><\/p>\n

\u201cThe priority is to try to preserve the value for the fund. That is the priority,\u201d Grande told Reuters. \u201cIf that means that the fund will be invested in a company that has been delisted for a period of time, that could happen. But as a main rule, we will exit the investments as and when, or soon after, it has been taken off an exchange.\u201d<\/p>\n

Something that may give the Norwegian fund some comfort is that Musk won\u2019t be running the company in radio silent mode. SEC rules, according to a CNN report, would require him to continue to report regularly to the agency. If a private company has more than 300 investors, which Tesla does by thousands, it\u2019s required to continue reporting \u2014\u00a0which may not alleviate the short-term pressures Musk hopes to escape with his plan.<\/p>\n

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Is Apple CEO Tim Cook considering investing in Tesla? With $267 billion in cash, Apple could afford it.<\/figcaption><\/figure>\n

Musk has spoken recently of the tremendous pressures he feels on a regular basis to meet the short- and long-term goals of the company. Some have suggested he could use a hand running the day-to-day operations, which he\u2019s done at SpaceX.<\/p>\n

In the right circumstance, that could come in a two-for-one deal as one Tesla bull told Bloomberg today that Apple CEO Tim Cook would be an ideal fit.<\/p>\n

\u201cIf you look at actually what Elon\u2019s problems are every day, they are operational, which is why Tim Cook was hired by Steve Jobs back in the day. Cook is perfect for this role,\u201d Gerber said. \u201cIn the past Apple and Tesla probably wouldn\u2019t have gotten along because Musk didn\u2019t need Apple, but it is clear he needs help.\u201d<\/p>\n

(Musk laments \u201cexcruciating\u201d pressures at Tesla.\u00a0<\/em>Click Here<\/a><\/span>\u00a0for more on his revealing interview.)<\/em><\/strong><\/p>\n

Plus, Apple has $267 billion in cash on hand, more than enough to acquire Tesla,\u00a0and has been working on Project Titan, its own autonomous EV, for some time now. The brain power and synergies gained from Apple investing in Tesla are mindboggling. Apple officials haven\u2019t made any comments implying there was an interest in investing in Tesla earlier.<\/p>\n","protected":false},"excerpt":{"rendered":"

As the Saudi investment fund that Tesla CEO Elon Musk suggested could provide the funding necessary to take the EV maker private is in talks to invest in another EV maker \u2013 Lucid Motors \u2013 Tesla\u2019s stock shot up more than 3% early in the day. The more it rains, the louder Musk seems to sing in it. For details, go to TheDetroitBureau.com.<\/p>\n","protected":false},"author":4389,"featured_media":126574,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[7,5,9],"tags":[],"make":[110],"post-state":[],"category_old":[150,123,155,299,169,132,125,207,288],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/129022"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/4389"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=129022"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/129022\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/126574"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=129022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=129022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=129022"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=129022"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=129022"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=129022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}