Tesla shares sank almost 9% in the US Friday, following the publication of an interview with CEO Elon Musk in the New York Times. The often outspoken chairman of the electric car maker, revealed the stress and pressure he’s been under this past year.
Musk added that he expects further pressure to come from Tesla and the short-sellers who continue to bet the firms’ shares will lose money.
Tesla shares ended the US Friday session 8.93% lower at $305.50. The stock is a little lower in out-of-hour trade.
Tesla privatisation plan
In the NYT interview, Musk said he doesn’t regret his initial tweet about considering taking the company private. Indeed, he said it was an attempt at being completely transparent.
However, reports Sunday and early Monday suggest that the secure funding he referred to, may not be as secure as he thought.
According to a Reuters article, PIF, the Saudi Fund that Musk said was interested in helping him take the company private, is in talks to buy Tesla rival, Lucid Inc.
While those talks show that PIF is very keen on entering the electric car market, it also raises questions over how reliable the funding for removing Tesla from the publicly listed stock market would now be.
The news will likely be another detail the US SEC will be interested in. The body is running a more in-depth investigation into Tesla’s communication strategies and is reportedly asking the board a lot of questions over just how much detail about the potential privatisation Musk has shared with them.
It’s also reported that Musk and the board are set to meet with SEC officials as soon as this week to answer questions over the firm’s communication style.
It’s not just the SEC who are said to be unhappy with Musk’s twitter happy style. Board members have reportedly asked him to hold back on tweeting so much and instead, focus on running Tesla.