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When your space rocket blows up on the launch pad, your main company starts losing money as you sneakily invest in a business you are Chairman of, you face backlash in the markets as coverage of failures in your autopilot system seemingly dominate the news cycle, and to top things off, one of your shareholders’ decides to sue you – isn’t it about time you start shorting your own stock on the spread betting circuit because it seems that’s what everyone else will be looking to do.
Having watched his SpaceX investment blow up before it started its’ mission – albeit fortunately insured for the full amount, Elon Musk, the acclaimed founder of Tesla and SpaceX and Chairman on the board to Solar City, is facing a $2.6bn shareholder lawsuit at Tesla after he has been accused of misappropriating funds to help fund a buy-out of the struggling solar panel company. While some may look jadedly on in the belief that he knows what he is doing or that they are powerless to stop him, the suit points out that Tesla Corp is not exactly rife with spare capital and that this purchase proves a major distraction to the firm, something which is not befitting of a public company with shareholder funds at stake.
Tesla Motors Inc (NASDAQ:TSLA) has managed to shed $30 or just under 14% in the last month from its’ share price and has been given a ‘Sell’ rating by analysts Cowen and Co. recently, whilst SolarCity Corp. (NASDAQ:SCTY) has dropped $7 or over 29% in the same time span and seems set to continue its’ downward trend. While these are seemingly proving great opportunities for investors and market traders at spread betting firm CMC Markets, their constant downward trend in the NASDAQ for the past 30 days will do little to console investors or woo new ones in the wake of this recent law suit against their founder.
It seems for the meantime, with Musk unlikely to back out of the buy-out and with the company having just entered into an agreement with Deutsche Bank to borrow up to another $300m to fund its’ vehicle leasing program, that the extensive costs needed to satisfy the Model 3 demand and the Gigafactory will not only ditch the company planted firmly in the ‘Sell’ zone with little reprieve to come in the close of the year, but also give the ‘flamboyant’ lawsuit a real leg to stand on with so few arguments to support his investment choices.
To start spread betting and trading on Tesla Motors Inc shares or to stay up to date on the lawuit and Elon Musk himself, keep reading our blog or check out our select list of approved brokers today.
