Is Elon Musk in trouble?
Post date: Nov 2, 2018 11:28:25 AM
By: Andrew Davis, Entertainment Editor
Posted November 2nd, 2018
Elon Musk is one of the world’s leading individuals when it comes to technology, innovation, and philanthropy. He revolutionized money with PayPal, and he introduced cheaper, more efficient rockets to the world through SpaceX; however, the company most in the news today is Tesla Motors, a car manufacturer set on creating fully-electric cars that can be purchased by the masses. Tesla Motors is currently engaged in a very ambitious plan to ramp up production of their new, cost-effective automobile, the Model 3. Tesla will be releasing its quarter three earnings on November 7th which will determine if this plan is looking successful. Until then, there is much news about Tesla and Elon Musk to mull over.
These last several weeks have had several major blows to the company and the pride of its owner. On September 27th, the SEC (U.S. Securities and Exchange Commission) sued Musk for a tweet put out on August 7th in which he stated that he would be “taking the company [Tesla] private at $420.” This was viewed by most as a joke referencing drugs and specifically cannabis. However, it drove the price of Tesla’s stock up 11% and was deemed to be an illegal business move. Musk will be facing a several million dollar fine, and perhaps even more humiliating, his removal from the position as the chairman of Tesla’s board. To make matters worse, Elon Musk physically smoked what appeared to be Marijuana on a live interview on September 7, 2018, which led to a 7% dip in Tesla’s stock (ticker TSLA). TSLA is currently at the lowest price it has been in the last 6 months. Although there is much confusion over Musk’s reasoning for such erratic decisions in these last few months, one thing remains certain. If Tesla can display outstanding Quarter Three results, the company as a whole will pull through.