The amount of news regarding Elon Musk that doesn’t involve Tesla is worrying Tesla investors. It feels as if Twitter might become his number one, and the funding for his Twitter buyout is the biggest concern. Investors are worried he sold Tesla stock in order to finance it and might need to sell further equity for other costs involved. All we’ve been reporting on regarding Musk has been Twitter the last few weeks, so it’s fair to be concerned as an investor in a company many believe is already overvalued.
However, Wednesday brought an end to the drought with the world getting positive news regarding Elon Musk and Tesla. A Delaware court ruled that Elon Musk did not act unlawfully in Tesla’s $2.1 billion takeover of SolarCity, which has been a disputed case for the last few years. Tesla acquired SolarCity in 2016, and Musk was accused of coercing Tesla’s board into acquiring the company as Musk was the Chairman and largest shareholder, with the lawsuit wanting $13 billion in return. Furthermore, Musk was accused of overpaying to acquire the company, which would help him more due to his position. SolarCity was running in losses, and it looked suspicious. According to Joseph Slights III, the official who looked over the deal, Musk did provide a fair offer to acquire the company, and it was able to be proven with Musk’s reasoning being that Tesla wants to be more than a car company. Slights said that the current success of Tesla displays this, and he’s not wrong. This gets some weight off Musk’s shoulders, but he might have to fly through some more legal clouds with his acquisition of Twitter. Yep, Twitter, not Tesla, and that’s the way things will be in the next few weeks regardless.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.