Furious Fridays

Elon Musk, Tesla and how CEOs affect share price

Today we’re talking about the markets, how CEOs affect share price and how public perceptions can make or break.

We look at Elon Musk.

Musk is a business magnate, investor and engineer.

  1. He is the founder, CEO, and lead designer of SpaceX;
  2. Co-founder, CEO, and product architect of Tesla, Inc.;
  3. Co-founder and CEO of Neuralink; and co-founder of PayPal.

 

 

  • In what has been a pressure-filled year for Tesla, the company’s third-quarter performance might be its most important test in 2018 – Musk said it will be great – “most amazing quarter in our history.”
  • But – JRE – Musk was filmed drinking whiskey, briefly smoking marijuana
  • It was the latest in a string of unconventional behaviour and bizarre acts by the billionaire
    • He has a very high IQ – Those people can come across as bizarre to some who don’t have high IQs
  • Even before Musk’s surprise August 7 tweet that he had funding “secured” for a go-private deal, Tesla had been under scrutiny from investors,
    • Analysts and short-sellers – it works to hit production targets and slow its cash burn.
    • Constant pressure from shareholders and analysts regarding near-term performance
    • He has said he wants to preserve a broad ownership of Tesla as a private company. That might be impossible for the mom and pop investors in the stock now who don’t qualify to invest in private companies as accredited investors. If they want to keep their ownership, it might have to be through a special purpose fund, something Musk has mentioned.
    • “Issues around regulatory approval – unclear how Tesla will allow retail investors who are not accredited investors to own stakes in a private Tesla

Musk stunned investors a month back with tweets saying he had funding to take the company private for $420 (A$589) per share.

  • Several followers questioned if it was against the company’s policy, while others mocked the CEO’s initial $420 bid, a number that has become code for marijuana
  • He then backed off from his plan, saying Tesla was better off as a public company.

 

Taking a company private – how it’s done

  • Simply going dark is a multistep process.
  • The exchanges need several days’ notice of the plan,
  • The public has to be informed at the same time.
  • Forms are filed with the regulators, one to notify it of the delisting and another to deregister the shares if the company has 300 or fewer shareholders.
  • Going private requires cash to buy out the minority shareholders, usually through a merger, tender offer or reverse stock split.

 

 

Cash rates decline – but will your mortgage repayments? As your savings rates certainly will!

Welcome to FF – RBA cash Rates are lower now – talk about flow on effects Today – Will you get mortgage cuts, how your savings will be affected, effects on the job market and wages.   Mortgage cuts Don’t expect the banks to pass on the Reserve Bank’s rate cuts in...

The Government’s war on cash and personal freedom continues with the introduction of the Currency (Restrictions) Bill 2019!

Welcome to Finance and Fury In today's episode, I thought it was important to cover Currency Bill - Might have seen in the news – headlines about the $10k transaction – Currency (Restrictions on the Use of Cash) Bill 2019 – what we are talking about – had first round...

Cannibalism, Nazism and property rights

Furious Friday - Part 2 Cannibalism, Nazism and property rights Welcome to Part Two! If you haven't already...listen to Part 1 before jumping into this episode Let’s look at these claims: Means of production owned by the public or state This removed property rights –...

What 5 factors create poverty?

Welcome to Finance and Fury, the Furious Friday edition This episode is a flow on from the previous furious Friday episode question from Nick, about poverty. Last episode we talked about how poverty is defined and the economic factors of poverty, which play only a...

Furious Fridays: What part of progress should governments have?

Welcome to Finance and Fury the Furious Friday edition. This is part 6 in the series, the second last episode of the series. So this is 2 more than expected in the series, which I guess is good for me. To do the last subject justice, I have broken it into 2 episodes...

Should you reduce debt or use surplus cash to build wealth? Negotiating with future-you

Say What Wednesday Should you reduce debt or use surplus cash to build wealth? Negotiating with future-you Welcome to Finance and Fury, “Say what Wednesday” Where we answer questions about the world of personal finance. This week, the question isn’t from a listener...

(Intro Series) From ‘Puzzle’ to ‘Map’

Intro - Episode 3 From 'Puzzle' to 'Map' Welcome to the 3rd part of the intro series for Finance and Fury. Today let’s start with a bit of time travel. Picture 1500’s, London. All the guys have hipster like facial hair, accessories, the big beards, the little curly...

How to prepare for buying a home, paying off a mortgage, starting a family or funding your kid’s education costs?

Welcome to Finance and Fury, The Say What Wednesday Edition special series – running through the catalogue of questions and concerns The series is broken down into three stages – 50 years or so timeline – last week was basics and the first stage...

How does the adaptability of humanity open the door to Global Economic control?

Welcome to Finance and Fury, The Furious Friday edition   Today we start discussing the SDGs in relation to The economy – few SDGs this relates to Go through each in detail in separate episodes – but this ep is an overview into how deep this goes. UN goals as...

Risky business; why fortune favours the brave (and smart!) and why volatility isn’t necessarily a bad thing

Episode 5 Risky business; why fortune favours the brave (and smart!) and why volatility isn’t necessarily a bad thing Today on Finance & Fury, we’re talking about …risky business! Why take risk at all when investing? There must be a reason some people are willing...

Pin It on Pinterest

Share This