On Aug. 7, Elon Musk tweeted he was considering taking the company private and that funding had been secured for the deal – Tesla’s stock shot up 11 percent that day. Six days later, he revealed that the money wasn’t locked down and later said the plan had been scrubbed. The U.S. Securities and Exchange Commission is reportedly investigating Tesla for possible manipulation of the stock price.
“Prior to the go-private episode, his credibility was in question, although investors still had overall confidence in the guy,” Erik Gordon, a business and law professor at the University of Michigan, said Saturday. “This whole go-private episode has taken his credibility close to zero.”
Read the article at The Detroit News.
