Today we chat about this Elon Musk and solar city situation. Shareholders believe that Elon Musk broke rules and laws as Tesla CEO around the acquisition of Solarcity. They believe the salacity deal was not in the best interest of Tesla shareholders at all and they believe Elon Musk did this just because if Solarcity failed then the other companies like Tesla could fail also.
What makes this situation even trickier is Elon Musk cousins were in charge of Solarcity so they got a lot of bail out money for that deal and the company was primed to fail. Space X another Elon Musk company bought a ton of Solarcity bonds when it shouldn't have back then also. It was all a super sketch situation obviously.
I beliebe Elon Musk did what he thought was in the best interest of not only himself, but also Tesla. If Solarcity failed maybe Tesla would have failed as well along with Space X. Remember all 3 businesses lost tons of money (still do) and Elon Musk was heavily intertwined with these companies. If Solar city failed then maybe investors wouldn't give Tesla any more money because they would be scared that Elon Musk would fail with Tesla as well. Its a complicated game and a sketch game needless to say.
Tesla stock is not a normal investment like others. Elon Musk is not a normal CEO like others. With that taken into consideration one must realize an investment in Tesla lives or dies based upon how Elon Musk does over time. Remember in 2015/2016 when all this went down Tesla was in a much different place. The Tesla model 3 wasn't out and Tesla model x was just about to come out. The company was tiny compared todays when they are a mass market electric vehicle company in which has the Tesla Model 3 the best selling electric car in the world.
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What makes this situation even trickier is Elon Musk cousins were in charge of Solarcity so they got a lot of bail out money for that deal and the company was primed to fail. Space X another Elon Musk company bought a ton of Solarcity bonds when it shouldn't have back then also. It was all a super sketch situation obviously.
I beliebe Elon Musk did what he thought was in the best interest of not only himself, but also Tesla. If Solarcity failed maybe Tesla would have failed as well along with Space X. Remember all 3 businesses lost tons of money (still do) and Elon Musk was heavily intertwined with these companies. If Solar city failed then maybe investors wouldn't give Tesla any more money because they would be scared that Elon Musk would fail with Tesla as well. Its a complicated game and a sketch game needless to say.
Tesla stock is not a normal investment like others. Elon Musk is not a normal CEO like others. With that taken into consideration one must realize an investment in Tesla lives or dies based upon how Elon Musk does over time. Remember in 2015/2016 when all this went down Tesla was in a much different place. The Tesla model 3 wasn't out and Tesla model x was just about to come out. The company was tiny compared todays when they are a mass market electric vehicle company in which has the Tesla Model 3 the best selling electric car in the world.
*Link to join my private stock group
Free PDF for the top 5 stock market apps and websites I use daily!
Becoming Master of the Stock Market full course
*My Instagram is : FinancialEducationJeremy
Financial Education
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