Tuesday, April 23, 2019
Home Business Chaos at Tesla - now determined by the US Justice

Chaos at Tesla – now determined by the US Justice


Executives flee, complaints, production probes, canceled stock market retreat …
Chaos at Tesla – now determined by the US Justice

Elon Musk: Investigations against the Tesla boss


Elon Musk: Investigations against the Tesla boss

Production problems with the Model 3, executives on the run, various lawsuits against the company and now the prosecutor in the neck because of crazy tweets to a supposed stock market retreat. Is Tesla sinking into chaos?

New trouble for Tesla: The thoughts of Tesla founder Elon Musk on the stock market retreat of the car maker have an aftermath. The American e-car maker admitted on Tuesday that the Justice Department had requested documents on Musk's remarks. This is not a summons, wrote a Tesla spokesman in an e-mail. Tesla hope for an early clarification of the matter. The Ministry of Justice declined to comment.

The US prosecutors examined whether Musk by his tweet, Tesla want to take from the stock market, the public has been deceived and operated price manipulation, the business news agency Bloomberg previously reported. The US Department of Justice did not want to comment on the case.

Investors had already feared a criminal investigation. Several hedge funds had already filed a lawsuit against Tesla for pricing Musk's tweet as price manipulation claiming "funding secured". Musk had posted his thoughts on a stock market retreat by tweet in August, but abandoned this plan a few weeks later.

The share of Tesla
Show stock market chart
In the meantime, it lost around 6 percent of its value after the release of the report. Currently, it is down 4.5 percent.

The prosecutor's investigation raises legal pressure on Tesla. Only a month ago, Fox Business News reported that the US Securities and Exchange Commission had summoned all nine Tesla board members to court. Musk had surprisingly announced in a tweet on August 7, to privatize Tesla at the stock price of $ 420. Later he withdrew his plan. Above all, his claim that funding for such a deal was secured is regarded as legally explosive.

Executives on the run

With the escapades of their driver also many executives seem to want to live no longer. More and more top managers leave the carmaker, it is getting lonely around Elon Musk. Recently, Tesla's chief accountant Dave Morton had given up his post – after only a month in the job. Then, from the finance department with Justin McAnear, another high-ranking manager took the line. In between, HR boss Gabrielle Toledano said she would not return to the company after her break. And also Shen Jackson, Tesla's director of manufacturing technology said these days, he would not return from the Sabattical in the company.

Short sellers: Seventh lawsuit against Tesla and Musk

To the uncertainty of investors, the suit of the short seller Andrew Left against Tesla and Elon Musk had contributed. The prominent activist investor argues that Musk staged the plans to take Tesla off the stock market with fraudulent intent. The aim was to "burn" investors who had bet on the falling share price of Tesla.

The class action lawsuit filed on Thursday alleges that Musk's dissemination of false and misleading information is also hurting investors who bet on Tesla's rising share price. The lawsuit filed by Andrew Left is one of at least seven against Elon Musk.

Also read: The dangerous sleep drug that not only Elon Musk is counting on

Tesla boss Musk has meanwhile talked about his incessant inventiveness. The ever-new ideas in his mind are like "never-ending explosions," Musk said during a podcast with comedian Joe Rogan on the night of Friday. When he was a little boy he wondered if he was crazy because other people did not seem to be like him.

"I think you do not necessarily want to be me," Musk said to his interlocutor. "You would not like that very much." Maybe it's "great" in the beginning, but "what if it does not stop?" During the lengthy conversation with Rogan, Musk puffed a cigarette offered to him with a blend of tobacco and marijuana (2:10:15). "I do not usually smoke grass, almost never," said the US entrepreneur. "I do not think it's good for productivity, it's like a cup of coffee in reverse." Cannabis use is not illegal in California.

Criticism of Musk is increasing

The criticism of Musk, however, accumulates anyway. The board is said to be worried about the nocturnal Twitter sessions, and some members are aware that Musk sometimes takes recreational drugs. The impulsive behavior of the Tesla boss also unsettles investors and causes strong fluctuations in the stock market, which have led to an extreme today.

Musk was not only negative because of his tweets for delisting Tesla. The CEO gave an interview to The New York Times, talking about the "worst year of his career" and the congestion. He said to take Ambien on a regular basis. The drug can make addicted and weaken mental performance. The interview also led to a slide on the stock market.

© manager magazine 2018

All rights reserved
Reproduction only with the permission of manager magazin Verlagsgesellschaft mbH



Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Must Read