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.
EXCLUSIVE Q&A: This 26-Year-Old Got 1M Instagram Followers In 1 Year. Here’s How He Did It (And How You Can, Too)
The rise of social media—the internet, really—has created more young entrepreneurs, business rockstars and self-made millionaire than ever before.
Still, one of the most coveted goals for business people is to learn how to crush it on Instagram. David Dang, a young internet entrepreneur, figured out how to do just that.
As owner and founder of @entrepreneurshipfacts, David has managed to create one of the best, fastest-growing channels on IG, pumping out daily motivational content to 1.3M followers. (At the time of this interview, he had recently cleared 1M.)
In just one year, he grew it from 100K to 1M, drawing attention from mega influencers Tony Robbins and Dean Dean Graziosi in the process. Yes, really.
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The Knowledge Broker Blueprint course that Tony Robbins and Dean Graziosi created is closing on Monday and I don’t want you to miss out and regret it… ⠀ Click the link in my bio @iamdaviddang 👈to learn what KBB is all about! ⠀ They won’t be making this offer again for at least another year… ⠀ And most people (this is the sad truth) will hesitate today and many will regret that more and more over the next year as they see others succeed in the digital economy.⠀ ⠀ Don’t get caught on the outside looking in. Join the KBB course and community and create the impact and success you desire while your access is still available!⠀ ⠀ Go to the link in my bio @iamdaviddang 👈to learn all about the Knowledge Broker Blueprint
Because we love to bring you the best of the best, we decided to ask David exactly how he managed to grow it like that, what tactics he used and how you (yes, you) can do it, too.
What’s up, Dave!
Let’s get right to it. You’ve managed to build a channel with tremendous growth and engagement. What made you start your @entrepreneurshipfacts and how did you grow it?
What started out as an Instagram page for my own personal growth, where I share my favorite inspirational quotes on business and entrepreneurship, and life, in general, really.
I’ve always knew that a corporate 9-to-5 is not my thing. Started my first little business when I was nine, I was quite an entrepreneurial kid.
Besides unlimited income potential, I love the freedom of being my own boss… I get to work where I want, whenever I want, without anyone telling me what to do or when I can take days off.
There’s nothing like it.
To me, this kind of freedom is priceless.
What triggered it for you?
I fell in love with personal development in my teenage years, and happened to read a couple self-help books from Dale Carnegie, Napoleon Hill, Tony Robbins, Robert Kiyosaki, etc. They completely changed my life.
I think that’s a common thing in hustlers. You just broke down the holy grail right there.
Yes. If you read any book from the authors I’ve just mentioned, you will realize a common theme that MINDSET is everything. It is literally the foundation to success, not how much resources you have or who you know.
I truly believe the life you’ve always wanted begins with your mindset. Despite having a university degree in Entrepreneurship & Marketing, I am now making a living with my online businesses, and also dabbling in investing.
What’s your goal with your page?
Although I don’t consider myself as being successful or an expert yet to tell people how or what to think, but my goal with this page is to hopefully inspire and influence people’s mindset in a positive way. In turn, helping them achieve whatever goals they have in life.
You have over 1M followers. People are loving your content. And everyone wants to know: How?! How do you grow an account like this?
I am proud to say that I’ve never used any shady tactics or bots to grow my IG account. Everything is 100% organic growth. Besides that, you also need high quality content that people want to see.
Like any social platform, you must understand the platform algorithm and work with it. That’s my biggest secret…
In part II of this article, Dave breaks down exactly HOW he selects his content and the secret sauce behind the engagement.
This Guy Co-Built A $4B Company In Four Years - And He Only Works 7 Hours A Day
Cal Henderson is pretty badass.
As co-founder and Chief Technical Officer of Slack — arguably the single most crucial role in any startup — Henderson has helped build a product from zero users to four million daily in just over three years.
About a year ago (cue Shmoney Dance!), Slack announced they’d raised $200 million in its fourth round of venture capital, putting the software at a WHOPPING $3.8B valuation.
And unlike many all-time greats on #TeamNoSleep (think Leo DaVinci, Thomas Edison and Vince McMahon) — and the modern ones who call for 95-hour work weeks — this dude actually puts his Z’s atop his to-do list.
This Mogul Became America’s 1st Black Billion-Dollar Businesswoman
Where to start?
She’s the first black billion-dollar businesswoman. Before Oprah Winfrey.
She started as a TV executive, founding Black Entertainment Television (BET), the first TV network targeting African Americans. She then became a real estate mogul.
Oh, she also owns a stake in three major sports franchises, the NBA Wizards, NHL Capitals and the WNBA Mystics, the African American, period, to boast that claim.
In honor of Black History Month, let’s dive into her remarkable career.
- Born Sheila Crump in McKeesport, Pennsylvania, Johnson co-founded BET in 1979 with then-husband Robert Johnson. The couple sold it to Viacom in 2000 for $2.9B
- Sheila Crump Johnson became the first African American woman on the Forbes’ Billionaire list in 2000—beating Oprah Winfrey to the distinction.
- Per Forbes, Johnson has an $820M net worth as of 2019
Foray into real estate…
After closing the sale to Viacom, Robert and Sheila pocketed around $1.5B each. Johnson used that windfall as seed money to build a hospitality real estate empire in 2005.
“There’s a disparity in paychecks between whites and blacks,” she told the Wall Street Journal. “I will never forget that.”
As CEO of Salamander Hotels and Resorts, Sheila controls a spectacular portfolio of six luxury hotels in Florida, Virginia and South Carolina. And she’s built it from the ground up—literally—in her own spirit.
“I’ve been to many hotels, not only in the US, but all over the world,” she told Forbes last year. “And I wanted to find something that was going to really make Salamander stand out beyond all of these hotels.”
So what does that mean?
“You have to understand, there are a lot of people, investment companies, with very deep pockets,” she says. “They can do it, but they don’t have the experiences that we’re able to bring. I am constantly trying to find a way to help Salamander Resort & Spa stand out head over heels above any other hotel — not only in the area, but in the nation.
“I want them to leave that resort wanting to come back and not just say, ‘I’ll be back in six months.’ I want them to come back all the time.”
And so far it’s worked. In fact, on Forbes Travel Guide’s 61st list of Star-Rated hotels, Johnson’s Salamander Resort & Spa outside of Washington, DC earned a Five-Star distinction.
Forbes: “Everything [she] touches turns to gold.”
That’s a real quote. From Forbes. Last year. It’s also true.
BET? Billion-dollar exit. Washington Capitals? Stanley Cup.
And Roma. Won 10 Oscars. Who showed it before a single soul started caring? Johnson’s Middleburg Film Festival. (Which, by the way, has 32 films and counting in Academy Award contention.)
Remember her golf resort at Innisbrook? Oh, yeah. Hosts the Valspar Championship, one of the PGA calendar’s most-anticipated tournaments.
Becoming a billionaire comes with a new level of clout as well. “When you don’t have money, you’re not invited to special events; you really don’t matter,” she told WSJ. “It’s a society thing.”
So instead, she’s turned to giving back. Her Sheila Johnson Fellowship’s paid for more then 40 scholarships at Harvard University for students who otherwise wouldn’t afford to attend.
Breaking glass ceilings.
There’s an alarming statistic in business and diversity—especially as it pertains to women. According to research by investor Richard Kerby, 18% of all VCs are women—and only 3% are black. In addition, less than 50 black women ever have raised $1M in funding.
“When I got started,” Johnson says, “I couldn’t get a loan. I had to use my own money to get Salamander Resort and Spa.”
She explained to WSJ last year that men can go to any bank with a bank proposal. And no matter how “wacky” the idea is, she said, “they’re going to get the financing. Women do not have that ability.”
Johnson’s taken it upon herself to do something about that, becoming one of the founding partners of WE Capital, an investment firm that invests in female entrepreneurs.
“I started out in a very unique position where I had my own capital to be able to get started,” she says. “But there have got to be banks and investors that believe in helping women who want to be entrepreneurs in the hospitality business.
“And it’s just really, really important that they really take a look at this.”