Current Events in Automobiles

Current Events in Automobiles

Tesla

After Tesla’s CEO, Elon Musk made a sarcastic tweet to mock the SEC (Securities Exchange Commission) and a short seller compared the company with Lehman Brothers before the failure of the investment bank, the company’s value plunged $10 billion and hit an 18-month low on October 8. You must have heard of the tweet by Musk on October 4th applauding the “incredible” work of the “Shortseller Enrichment Commission” and he described the new nickname he had given for the SEC as “so on point” when the agency wanted both Tesla Inc (NASDAQ: TSLA) and him to pay 20 million dollars each as fines which will be distributed among investors who the agency considered were affected. Yes, I had a sudden inspiration to write on recent topics and thought about it deeply before choosing to write on a current event in automobiles.


tesla

One of Tesla’s most prominent short sellers, David Einhorn, the President of Greenlight Capital pushed Tesla’s share value further down on October 5 with the third-quarter update of his investment firm that accused Musk for his erratic behavior and blasted him for “deceptive actions” that he said will catch up with it “like Lehman”.

 

It is quite saddening that in recent months, Tesla’s value has experienced a drop-down as a result of several tweets from Musk that were controversial, his appearance on public podcast where he drank whiskey and smoked weed with comedian Joe Rogan and the lawsuit that the SEC filed before the September 29 settlement that also demanded him to give up his position as company chairman.

 

Rise in Tesla’s Value after Acquisition of Stake by Key Shareholder

After a Scottish partner and one of the main shareholders of Tesla, Baillie Gifford & Co declared in an SEC filing that it had obtained an 11.4% stake in the Asian electric car competitor of Tesla Nio (NIO.N) that listed its shares on the NYSE (New York Stock Exchange) on September 12, Nio’s shares soared 22% on October 9.

tesla

Do you know that Tesla’s share value rose up to 4.89 percent on October 9, closing at $262.80? Next, to Musk who himself owns roughly about 20% of the California-based car company’s shares, the next biggest shareholder with a 9% stake is Baillie Gifford & Co. Nio made its initial public offering (IPO) on September 12 and just two days later, its share price plunged from its usual high value of $13.80 on September 14 and after the plunge is when the UK investment firm more than doubled its offering value to 6.26 dollars a share in order to raise 1 billion dollars!

 

There is this gossip that Nio has plans to build cars first for the China market and then pursue its business in the highly competitive markets of the United States and Europe. Tesla is already building vehicles and has also turned its Model 3 into a popular mid-size car in North America, according to recent sales information.


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