San Francisco: Tesla CEO Elon Musk has denied that James Murdoch, the younger son of media mogul Rupert Murdoch, is going to replace him at electric auto maker Tesla. A federal judge is due to review the settlement on Thursday.
The SEC accused Musk of committing securities fraud due to an August 7 tweet in which he declared he had secured to finance taking the company private at $420 per share, a huge premium over the stock price at the time. Musk initially refused to settle, leading the SEC to double its fine from $10 to $20 million and increase the length of time Musk is barred from serving as Chairman from two to three years.
Tesla has filed an official trademark application for Elon Musk's "Teslaquila." .
Tesla's board has not made a final decision on who should...
The executive originally attracted the attention of the SEC on Twitter after claiming funding had been "secured" to take the company private at $420 per share.
According to the publication, Tesla legal vice president Jonathan Chang testified on Wednesday in a National Labour Relations Board (NLRB) hearing that the automaker's general counsel told him to write new confidentiality agreement for employees in order to "have them renew their vows".
Earlier this year Mr Musk's Boring Company sold more than 20,000 "flamethrowers" for $500 each, raising more than $10m for the billionaire.
Musk is the public face of Tesla, and any chairman would have to contend with his powerful personality. Hedge funds and other institutional investors own 62.03% of the company's stock. On Wednesday, it was revealed that T. Rowe Price Group Inc., which owned 11.93 million TSLA shares at the end of Q2 2018, increased its stake in the company in Q3.
Chester Spatt, finance professor at Carnegie Mellon University and former SEC economist, said the shareholder vote requirement shows the SEC is protecting investors.
Murdoch, at a recent Goldman Sachs event, spoke about working with Tesla and Musk. Canaccord Genuity set a $316.00 target price on Tesla and gave the stock a "hold" rating in a research report on Tuesday, August 28th. If Musk truly wants to outwit Murdoch, he'd better abandon the Gracias plan and pick a new independent board member to serve as chair instead. So far, he had lead the company and the board by himself. The company has a debt-to-equity ratio of 2.01, a quick ratio of 0.37 and a current ratio of 0.73. Filing to trademark a name would be a pretty intense strategy for furthering a prank, so it seems possible that this might be a real endeavor for Musk.