Why China Is Beating The U.S. In Electric Vehicles
Tesla shares again broke a record in value, climbing to $ 422.01 per share, growing more than 3% during the trading session and bringing the company’s market capitalization to 75 billion. Thus, the “legendary” goal of CEO Elon Musk was achieved after 503 days after his acclaimed tweet last year.
On August 7, 2018, without prior warning, Musk announced that he was considering a buyback of the company at 420 per share, and ended the message with the phrase «funding already secured».
Before the rise in the value of securities, the company experienced performance records, as well as crisis moments that led to litigation, government investigations, layoffs and other problems. This rally was cut short by a surprisingly profitable third quarter.
Following the controversial tweet, Musk announced that Tesla will remain a public company, but it was not enough to calm the nerves of investors. Tesla Shares Down About 16% In Three Weeks.
He then stunned market participants again when he appeared on Joe Rogan’s podcast and smoked what appeared to be marijuana during an interview.. The next day, shares dipped another 6.3% and sparked calls for Musk’s resignation and doubts about his mental stability..
The SEC then sued Musk for securities fraud because he did not disclose the relevant documents before announcing his intention to buy out the company.. The SEC sought to ban Musk from holding leadership or director positions in any public organization. Musk retained his role as CEO through an agreement with the SEC, but was forced to step down as chairman and pay a $ 20 million fine.
«This unjustified action by the SEC leaves me deeply saddened and disappointed.», – Musk told CNBC.
«I have always acted in the best interests of the company and investors. Honesty is the most important value in my life, and the facts will show that I have never cheated.», – he added.
Automaker Shares Jump 3.6% In Early Trading After News Reuters that Tesla will take a loan of $ 1.4 billion from Chinese banks. The funds will go towards the company’s Shanghai plant.
Tasla will work with China Construction Bank, Agricultural Bank of China, Industrial and Commercial Bank of China and Shanghai Pudong Development Bank, as well as other firms. Banks previously offered Tesla up to 3.5 billion yuan ($ 499 million) for maturity on March 4, 2020, the Securities and Exchange Commission said in a statement. of March 1, 2019.