Tuesday August 28 2018
On August 7 Elon Musk tweeted that he might take TSLA private at $420 a share. The SEC and everyone else wondered where he would get the $70 B to do that. And the SEC wondered if this was just a stunt to boost the stock price.
Now Musk says TSLA will stay public.
Here is one observation about this behavior.
“Tesla investors must realize that they have a panicky, erratic, possibly self-destructive C.E.O. at the helm,” said Jeffrey Sonnenfeld, a professor at the Yale School of Management. “No C.E.O. is ever this confused and confusing.”
A CEO should not be tweeting about the financial future of a company that still has not shown a profit.
We study good governance in ACCT 5308 and examples of the lack of that. This is the latter category.
I have wondered if TSLA will be another Tucker or DeLorean. NOw trading around $316, JPM has lowered it stock price estimate to $195. But if a company is not making any money, how does one come up with a specific number?
Professor Elam 
Leave a comment