Tesla, Elon Musk win dismissal of lawsuit over Model 3 production

Tesla, Elon Musk win dismissal of lawsuit over Model 3 production

Tesla, Elon Musk win dismissal of lawsuit over Model 3 production

Tesla shares on Monday were recently off 3.5 percent at $311.45.

Tesla investors are likely to suffer a lengthy hangover from Elon Musk's aborted offer to take the company private, Wall Street has warned.

Musk stunned markets earlier this month by announcing the plan to go private in a tweet and boasting that funding had already been secured.

"Given the feedback I've received, it's apparent that most of Tesla's existing shareholders believe we are better off as a public company", wrote Musk.

This week would also be an inopportune time for a capital raising, given that many bankers and investors are away ahead of the September 3 Labour Day holiday. "While we are always looking for highly talented executives at Tesla, there is no active COO search", a Tesla spokesperson said in an email.

More news: Cyberpunk 2077 is now playable from start to finish

Several analysts suggested that Mr Musk could be replaced as chief executive or that a chief operating officer may be hired to support him. Leaving ownership as is puts the scrutiny back on Musk's all-consuming work style, the company's tricky cash position, its ability to meet mass-market production goals, and the independence and oversight of Tesla's board.

Tesla had $2.78 billion in cash at the end of the second quarter, after a record $718 million loss. A Tesla spokesman on Sunday referred to those previous comments.

Within half an hour, Musk took to Twitter, saying he was considering a leveraged buyout that would take Tesla private. Several investors have also sued Tesla, alleging that Musk's announcement was meant to manipulate the price of the company's stock.

The high price investors have put on Tesla's shares has allowed Musk to expand USA production, invest in building out a vehicle charging network and start work on new models including a small sport utility vehicle, a new Roadster and a semi-truck even as the company burned cash.

"We expect shares to be under pressure in the near term as investors question the go-private process and the outcome of staying public", Ben Kallo, an analyst at Robert W. Baird & Co., wrote in a report. Coffee noted that the SEC may feel as though these disclosures were deficient. Musk said earlier this month that the company's "default plan" would be to fund that expansion by borrowing money from Chinese banks.

Related news



[an error occurred while processing the directive]