Tesla shares down more than 6%
Shares of Tesla are in freefall today as the wade into the post-earnings gap, trading down $24 to $311.
The bulk of the decline is due to reports that the SEC has subpoenaed and will interview Musk and other members of the board next week. The New York Times interview with Musk doesn't paint a great portrait.
"Some board members have expressed concern not only about Mr. Musk's workload but also about his use of Ambien, two people familiar with the board said," the reports says.
That some insiders would report this to a newspaper amidst the turmoil shows that not all is well.
"He said in the interview that he wanted to offer a roughly 20 percent premium over where the stock had been recently trading, which would have been about $419," the NYT says.
The back-of-the-envelop style of putting out a takeover number suggests the funding isn't as secure as believed. The story also says no one at the company reviewed the tweet beforehand. He also typed it as he drove himself to the airport.
Funding secured also remains unsecured.
"Mr. Musk has said he was referring to a potential investment by Saudi Arabia's government investment fund. Mr. Musk had extensive talks with representatives of the $250 billion fund about possibly financing a transaction to take Tesla private - maybe even in a manner that would have resulted in the Saudis' owning most of the company. One of those sessions took place on July 31 at the Tesla factory in the Bay Area, according to a person familiar with the meeting. But the Saudi fund had not committed to provide any cash, two people briefed on the discussions said.
The NYT says he also alternated between laughter and tears in the interview, which is another hint that his mental health isn't 100%.
