Tesla or No Tesla, the EV Market Will Grow
Tesla may be on a rocky road, but Mr. Musk, despite his eccentricities, has sparked a revolution.
On August 7, Tesla chief executive officer Elon Musk tweeted that he had “funding secured” to take the company private. Chaos followed.
The share price soared around 11% after the controversial tweet, but plunged after that.
To make matters worse, Mr. Musk interviewed with the New York Times, where he revealed a troubled mindset. He said the tweet was an attempt at transparency.
Since then, it is evident that what Mr. Musk was referring to was a “potential” investment from Saudi Arabia’s government investment fund. A few sources suggest that the funding could come from Mr. Musk’s rocket company SpaceX.
The Securities and Exchange Commission (SEC) served Tesla with a subpoena to investigate the truth behind the statement. The evidence until now suggests that Mr. Musk’s tweet may have violated the SEC rule that all public statements made by company executives must be true.
Mr. Musk’s unpredictability has spooked investors and ignited discussions about the company’s survival. The company is still suffering from the consequences of the fateful tweet, and will likely continue to be scrutinized over the next few months. But does Tesla’s fall mean a fall for the electric vehicle market as a whole?
Tesla may be on a rocky road, but Mr. Musk, despite his eccentricities, has sparked a revolution. Tesla or no Tesla, the electric vehicle market will continue to grow.
Some analysts predicted that Tesla was in trouble even before the tweet to go private. UBS predicted a 30% drop in Tesla’s share price in the next 12 months. The bears expect financial issues, sales problems, and manufacturing delays to hamper growth.
It seems 2018 has been a year of setbacks for Tesla. However, despite negativity, there’s also the bullish opinion that Tesla is indestructible. Overall, Tesla has increased more than 200% in the past five years.