- 9th August 2019
- Posted by: Hakeem
- Categories: Innovation, Technology
- It’s been a year since Tesla CEO Elon Musk tweeted about taking the company private at $420 a share.
- Shares of the electric vehicle manufacturer have tumbled 38.5% since Musk announced the plans and that funding was “secured.”
- Tesla still retains a passionate customer base, its vehicles garner critical praise, and many analysts retain “buy” or “strong buy” ratings for the automaker.
The now-infamous tweet on Aug. 7, 2018 marked the beginning of a chaotic 12 months for the Silicon Valley automaker that set new performance records coupled with some extreme low points, which have brought litigation, government inquiries, layoffs and operational challenges. A September settlement agreement with the Securities and Exchange Commissionremoved Musk from his chairman role while the company.
Neither Musk nor Tesla had to admit any wrongdoing under the settlement, but they couldn’t deny wrongdoing, either.
Tesla’s shares have tumbled 36% over the last year to a Thursday close of $238.30, wiping out roughly a third of its market value, which now stands at $42.7 billion.
Still, it’s far from all bad for Tesla. The company reported two consecutive quarterly profits for the first time ever and it significantly increased production to about 7,000 vehicles per week.
However, even many of Tesla’s positive milestones have been shrouded in controversy, including recent claims the company made on the safety of its Model 3 sedan that have been called into question by the U.S. National Highway Traffic Safety Administration.
Tesla didn’t immediately respond to requests for comment.
Here’s a look at some of the highlights, and low lights, from Tesla’s turbulent year since the “funding secured” tweet and how the market reacted:
Weeks after Musk’s initial tweet, he announced Tesla would remain a publicly traded company on Aug. 24.
Musk, in a blog post, said the decision was based on the process being “even more time-consuming and distracting than initially anticipated” and shareholders, “in a nutshell,” saying, “please don’t do this.”
Tesla’s shares fell by about 16% over those three weeks from their close of $379.57 a share the day Musk tweeted “funding secured.”