The Founder and Chief Executive Officer of Tesla, Elon Musk, devaluated his company by $14 billion by making a series of tweets regarding the stock price margins associated at Tesla. The company was previously listed at $100 billion before these remarks were made public. Another Tweet made shortly after his initial statement on Tesla indicated that Elon would sell all his possessions, days before his son is expected to be born.
This has caused anger with Elon Musk’s girlfriend, who won’t have necessities required to raise a newborn child. The possessions that the Tesla CEO plans to sell includes four homes worth $100 million. It should be mentioned this isn’t the 1st time that Elon has gone down this road. He previously made public remarks through Twitter in 2019, claiming that he’d make Tesla a private corporation and take it on the New York Stock Exchange. This prompted the Securities & Exchange Commission to fine Elon Musk $20 million, claiming he made these statements purposely to fluctuate the stock valuations associated with Tesla.
Supporters behind Elon Musk are confused as to what brought this mindset. Online influencers in the technology market space have remarked that these aren’t the actions of a newborn father. They are instead the actions of a foolish man who’s never made his mind up regarding his philanthropism.
Sentiments opposite to online supports was issued by Daniel Ives, an analyst with Wedbush Securities. Daniel noted that Elon Musk continuously has created headaches for investors, often tweeting about political issues that alternate the stock margins with Tesla. That’s why Daniel believes that Elon will revert these statements and market valuations associated with Tesla will return to normal. It should be noted that Elon Musk was paid $2.3 billion in 2019 as the Chief Executive Officer of Tesla.
The 2018 Scandal
When Elon Musk prompted the $20 million fine from the Securities & Exchange Commission, the Board of Investors with Tesla questioned if the founder should remain on board as CEO. Business analysts suspect similar concerns will be indicated with the recent actions of Elon Musk. Furthermore, the SEC could determine the latest statements from the South African Native as another method to fluctuate the valuation of Tesla. It’d prompt an even greater punishment onto Elon Musk.