Displaying items by tag: tesla

Thursday, 09 August 2018 09:19

SEC Probing Musk’s Tweets

(Washington)

In what seems to have amounted to the “shot heard round the world” of financial markets, this week Elon Musk, Tesla CEO, tweeted that he may take the company private at $420 and that he already had the funding secured. As expected, this sent markets into a tizzy, with the stock gaining sharply as it moved towards the stated price. Now, however, the SEC has announced it is investigating the legality of the tweet, and is investigating the particular statements made. The SEC maintains that such a statement should have been made in an SEC filing rather than a tweet, and it wants to investigate if funding was actually secured. If not, it could mean Musk was intentionally misleading the market.


FINSUM: Musk has been on a very rocky path lately, and this SEC inquiry is not going to help. That said, the idea of taking Tesla private still seems like a good one to us.

Published in Eq: Large Cap
Wednesday, 08 August 2018 09:19

3 Reasons Tesla Should Go Private

(New York)

Elon Musk shocked the world and the market yesterday. After several weeks of turbulent rhetoric and behavior, the CEO yesterday announced that he was seeking to take Tesla private. Musk said bluntly, “Am considering taking Tesla private at $420”, continuing “Funding secured”. The stock was trading at only $356 when he announced his intentions. There are three ways doing so would benefit Musk and Tesla. Firstly, they wouldn’t need to do anymore public equity funding issues. Secondly, he would not need to face anymore pesky questions from analysts. Thirdly, doing so would stick it to the short-sellers that Musk hates.


FINSUM: If we take a step back and examine it, Tesla does seem like the sort of company which might be better off private at this point. Just as Uber has stayed private while it has burned mountains of capital, Tesla might be wise to follow that lead.

Published in Eq: Large Cap
Monday, 11 June 2018 10:35

How Batteries Will Change Everything

(Los Angeles)

One of the most disruptive technologies in industry might not seem that disruptive—batteries. Yet advances in batteries are about to reshape many areas, not least of which is the power grid. Home energy storage and car battery power are two of the biggest areas of disruption, and investors need to understand the dynamics in play. Better batteries mean less energy costs as power can be stored to smooth out demand-based pricing. It also makes electric vehicles legitimate, and possibly cheaper competitors to gas vehicles. Additionally, improved energy storage makes renewables profitable.


FINSUM: Batteries are going to change the economics of almost everything related to power. Make sure you understand some of the key battles because share prices are going to start reflecting the changes.

Published in Eq: Tech
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