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Elon Musk’s Email To Staff: Why Going Private Is The ‘Best Path Forward’ For Tesla



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.

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.


INTERVIEW: Founder of $310M Clothing Line Bonobos On The Best Way To Raise Money (And No, It’s Not VC)



When Andy Dunn graduated from Stanford, the aspiring entrepreneur kickstarted a menswear company from his small apartment in New York. The clothing line, Bonobos, started off with a simple idea — selling chino pants.

Ten years later, the company was acquired by Walmart for $310M. According to Dunn, the key to raising funds does not always hinge on money. Here’s how he did it.

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Here’s How Apple’s CEO Tim Cook Starts His Day (And What He Does Might Surprise You)



Apple has became a trillion-dollar company. Despite the tech giant’s great numbers, how does its CEO Tim Cook actually start his day?

In a recent Axios interview, Cook revealed he starts each day just before 4 a.m. with a strict morning routine.

What that consists of might surprise you: He reads user comments about Apple products.

“I like to take the first hour and go through user comments and things like this that sort of focus on the external people that are so important to us,” Cook says.

In other words, he reads comments from fans, trolls and everything in between.

You’d think the CEO never bothers to read stuff like that; that he’d have an assistant ready to give him the rundown.

“And then I go to the gym and work out for an hour because it keeps my stress at bay.”

Workouts can be super critical. Billionaires and other successful entrepreneurs cite fitness as a key component to their success (and overall sanity).

“I seriously doubt that I would have been as successful in my career (and happy in my personal life),” Branson once wrote in a blog post. “If I hadn’t always placed importance on my health and fitness.”

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Investors Reveal: 3 Major Mistakes Aspiring Entrepreneurs Make



There’s an old saying about first time entrepreneurs—they don’t know what they don’t know. 

No matter what field you are in, or what type of business you own, it is so important that you understand some of the mistakes that tend to plague so many entrepreneurs in today’s market.

There is one main mistake you can avoid from the jump. But it’s the same one many founders miss, investor Sebastien Eckersley-Maslin says.

“Most people come up with a solution first, without thinking through the problem,” Eckersley-Maslin told CNBC.

More often than not, aspiring entrepreneurs come up with a great idea…only to discover there’s no need. 

This looks pretty obvious, at first, but you’d be amazed to know how many people overlook it. So what are the right moves to make?

Here are some common mistakes aspiring entrepreneurs make.

1) Underestimate the amount of time it takes to learn a new industry

“One dumb mistake I made is to underestimate the barrier and knowhow when entering into a new industry,” says Zhifei Li, Founder & CEO of the Beijing-headquartered Mobvoi, the maker of the smartwatch called Ticwatch.

“Irrelevant experience can be a burden,” Zhifei Li, Founder & CEO of Mobvoi & Ticwatch. “Stay humble, stay hungry.”


2) Holding on to an under-performing employee for too long

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Chris Myers, the CEO and co-founder of the Denver-based financial tracking and analytics tools for small businesses BodeTree, says he held on to an under-performing employee for too long.

“I hesitated to take action, instead holding out hope that somehow the individual would fix their behavior and get back on the right track,” says Myers. 

3) Launching a company with no customer validation

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Victor Chang’s first startup idea, LifeCrumbs, a social journaling app, seemed brilliant to him. But Chang never tested it with potential consumers and that was, he says, a “terrible mistake.” He spent five months building the app in stealth mode.

“This hurts a lot because when we finally launched the service, we realized this isn’t what the customers were looking for!” In hindsight, Chang says, LifeCrumbs wasn’t different enough from existing products to be successful.

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