Elon Musk is a very smart and could easily persuade anyone for his own benefits. In this case, Musk was accused of misleading investors into buying stocks in his company. Due to these accusations, Musk was sued by the SEC for misleading his investors. Musk’s company, Tesla, lost a lot of profit because of the sueing and accusations. Musk tweeted that he planned to make Tesla private with a $420 share in the company. The SEC claims that Musk never secured the funding for the stock investors and he never made the company private. This lead to Musk being sued and losing tremendous amounts of money.
To summarize the article, Tesla’s falling stock and lawsuits against Musk is a serious problem for this company. Having these lawsuits filed against Musk could be even more damaging than most people speculate. The SEC has asked to stop Musk from being a leader of a public company and many other penalties. With all these accusations towards Musk and investors leaving Tesla, the company’s stock took a dive and has fell more than 29% since Musk made these incorrect statements. Having all these lawsuits towards Musk is not a light concern for Tesla. He is the CEO of the company and turned them into where they stand today, a multibillion dollar company. Tesla still faces problems, even though Musk claims the company will make enough money to make Tesla a profitable company in the second half of 2018.
There is no doubt that Musk should be punished for his claims towards investors. The false accusations he made towards the people who are trying to help his company out and hope they become larger in the future, is not right. Musk should be punished for these remarks, but not too harshly. When a CEO of a billion dollar company states something that is misleading and not true, it is right that he is losing investors in his company and getting sued for these statements. The SEC says that he should never be allowed to me the officer of a public company, which might be a little too harsh. Musk should lose investors and give money back to the people he “stole” from, but he should still be allowed to run Tesla. After these punishments are delt, Musk should learn from them and try to be a better company leader and person to his investors.
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With the false remarks made by CEO Elon Musk about Tesla’s status causing people to give in to his company, is hurting our economy. These misleading claims towards Tesla’s stock causes people to put their money into this company thinking they are getting a good deal out of this investment. However, these statements are false, which leads to Elon Musk getting sued and a dip in Tesla’s stock price. This hurts our economy because people are putting their money towards a company that is failing expectations when they could be putting it towards good use. The fall in stock price is not very good for this company. Tesla uses a lot of money to build these electric cars and charging stations, but it really needs money to pay a one billion debt Tesla has dug for its self. This very deep debt could come back to haunt Tesla in the future.
To conclude, Tesla and its CEO are facing major obstacles at the moment. With Musk almost not being able to be an owner of a public company and Tesla’s stock declining, things are not looking good for them. If Musk is no longer allowed to be Tesla’s owner, this will provide the company with major setbacks as Musk was the one who put this started this company from scratch. Musk denies these claims and that the company is not in financial trouble, stating that he will sell enough cars to pay off his extreme debt. Tesla is under a lot of heavy fire due to the false remarks by the CEO. He stated that we would go through with his claims, leading to Tesla getting more investors.
