In one of the biggest moves across Tesla’s history, Elon Musk stunned investors when he tweeted of his plans to take Tesla private at the price of $420 per share. Musk claimed that the required funding for the company has also been secured.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
In an email sent to employees, Musk, the CEO and Tesla’s largest shareholder, outlined several reasons for this decision.
1. Public volatility
One of the primary reasons is public companies—like Tesla—are exposed to wild swings in share prices, largely driven by company news, earnings, and other events.
2. Less discloure
Public companies have to disclose their earnings every quarter. For that same reason, public companies can face pressure to make short-term decisions.
As a private company, Tesla won’t have to. Musk isn’t concerned with short-term cash burn — he’s looking at the long game at the long-term horizon.
3. Stopping the short sellers
Earlier this year, Tesla overtook Apple as the most shorted stock in US market. Musk says that creates an “incentive for a large number of people to attack the company.”
(Tesla shares are currently trading approximately 18% below the $420 target offer price.)
Musk says the company can return back to publicly traded markets once Tesla’s operations are stabilized.
How Did The Market React To This News?
Tesla shares surged over 11% to $379.57 on Aug. 7 post-tweet. However, the stock fell 6.3% over the next 3 days to close at $355.49.
Tesla is also facing two class action suits that claim Musk has violated federal securities law via this tweet.
The plaintiff Kalman Issacs alleged that Musk has tried to manipulate Tesla’s share price to “completely decimate” short-sellers.
(And he sort of did. According to CNBC, short sellers lost a whopping $1.3B right after the tweet broke.)
Another class action suit filed by plaintiff William Chamberlain claims Musk misled investors.
Chamberlain has raised doubts over investor funding as well. Tesla and Elon Musk could face an investigation by the SEC (Securities and Exchange Commission) as to why this disclosure was made on Twitter.
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[VIDEO] Tony Robbins: Here’s How To Invest Before You’re 30
As a millennial in today’s consumer-driven world, budgeting and managing your paychecks can be tricky.
Thinking like a consumer and not the owner of the product can prove to be a big difference to building your investments. Instead of owning the latest Apple device, you’ve got to target owning a part of Apple, and this simple move can be the first step towards becoming a better manager of your wealth.
Here are two incredibly important money habits to foster that millionaire author Tony Robbins banks on (and you cannot afford to miss them).
BREAKING: WealthLAB Co-Founder Makes Forbes 30 Under 30 List
Forbes Africa just unveiled its fifth annual “30 under 30” list, highlighting the top young entrepreneurs, innovators and gamechangers.
And guess what: WealthLAB co-founder Odunayo Eweniyi is on it. See the full Forbes list here.
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Extremely honored to be on the list of this year’s Forbes 30under30 2019 in Technology along with my cofounders @somtoifezue and @JoshChibueze. Thank you everyone for the support, we could not have done this without you guys! Thank you @forbesafrica! #thegirlthatcould #30under30
Alongside co-founders Joshua Chibueze, 26, and Somto Ifezue, 28, Odunayo built PiggyVest, a fintech app that’s helped over 230,000 African Millennials invest and save over $15M.
“PiggyVest was born out of the need to help people create a sustainable means of saving,” Odunayo told Forbes. PiggyVest users currently earn 10-13% on savings.
Just last May, PiggyVest—then known as Piggybank—closed a seed round, raising $1.1M. In doing so, Odunayo became one of under 30 Black women to raise over $1M in startup capital.
While the app started as a digital piggy bank for savers, Odunayo told TechCrunch the goal was to become a “financial warehouse” where other financial providers “can plug in their services for [PiggyVest] users.”
That vision recently came to life with the launch a new investment feature called “Investify,” which pays around 25% depending on the investment opportunity.
These investments will range from classic guaranteed fixed income opportunities (TBills, bonds, commercial papers, etc) to unconventional opportunities in real estate, agriculture, and transportation.
Minimum amount you can invest will vary by investment opportunities.
— PiggyVest (@PiggyBankNG) April 30, 2019
The Forbes distinction comes on the heels of an impressive recent run of awards for the young entrepreneur.
In March, Odunayo earned an award from Forbes as one of the top young “wealth creators” in Africa. Shortly after, Odunayo was named 2019 SME Entrepreneur of the Year in Wealth and Society in West Africa.
Prior to founding PiggyVest, Odunayo co-founded PushCV, the largest job database in Africa.
“I’ve always wanted to make an impact. I didn’t know how I would do it, but i felt a compulsion to.”Odunayo told Black Enterprise in a recent interview.
In addition to PiggyVest, Odunayo’s co-founded WealthLAB (yes, this WealthLAB) with NYC-based investor-entrepreneur Philip Michael. The two also invest in women —and minority run startups in the US.
Forbes Africa named 120 entrepreneurs across four categories: trade, technology, innovation, and sport. “I’m honored but I’m just ready to work,” Odunayo said when asked about the award. “I’m already thinking about what’s next.”
Well, alright then. Hit her up and congratulate her on IG here!