Tesla’s tur­bu­lent stock mar­ket run

Financial Mirror (Cyprus) - - MARKETS -

The Se­cu­ri­ties and Ex­change Com­mis­sion is su­ing Tesla CEO Elon Musk for se­cu­ri­ties fraud, ac­cus­ing him of mak­ing “false or mis­lead­ing” state­ments that caused “sig­nif­i­cant con­fu­sion and dis­rup­tion in the mar­ket for Tesla’s stock and re­sult­ing harm to in­vestors”.

On Au­gust 7, shortly af­ter noon, Musk had tweeted about po­ten­tially tak­ing Tesla pri­vate at a price of $420 per share and elab­o­rated on the plan in a se­ries of fur­ther tweets over the next few hours. Musk’s pub­lic mus­ings set off a trad­ing frenzy dur­ing which Tesla’s share price spiked un­til trad­ing even­tu­ally had to be halted for more than 90 min­utes. Tesla shares closed at $379.57 that day, up more than 10% from the pre­vi­ous day and 6.4% from the mo­ment of Musk’s ini­tial tweet.

The weeks af­ter Musk’s con­tro­ver­sial tweets re­mained tur­bu­lent at Tesla, with re­ports of an SEC in­ves­ti­ga­tion, the de­par­ture of two se­nior ex­ec­u­tives and sev­eral head­line- grab­bing ap­pear­ances of Musk him­self caus­ing Tesla’s share price to swing wildly. Tesla shares were down more than 10 per­cent in pre-mar­ket trad­ing on Fri­day in re­sponse to the SEC suit that could re­sult in Musk be­ing barred from ever serv­ing in an of­fi­cer or direc­tor role at a pub­lic com­pany again. (Source: Statista)

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