How Cathie Wood convinced Elon Musk not to take Tesla off the stock market – Business AM

The famous investor opposed this plan of Elon Musk, in 2018, and Elon Musk actually changed his mind. This is what he said in the trial in which he was targeted, for the way in which he expressed the idea of ​​buying all Tesla shares and removing the manufacturer of electric vehicles from the stock market.

Why is this important?

Elon Musk wants to take Tesla off the stock market and announced his decision on Twitter. But he later changed his mind, causing the price to drop. He was charged and convicted of market manipulation and fined $20 million. But the tweets aren’t done imitating.

In the news : the investor lawsuit against Elon Musk, regarding his tweets in which he indicated that he “raised funds” to buy back all Tesla shares and to remove the company from the stock market, August 7, 2018. Tweets that caused them to lose a lot of money, when it appeared that Musk was dropping his plan.

  • The Tesla boss explained at Monday’s hearing how he intends to finance this acquisition. The Saudi Sovereign Fund was particularly interested (but did not do more than that in the end) and it considered selling shares in its other company (not listed on the stock exchange), SpaceX.
  • Tuesday, place for another testimony: how and why Elon Musk changed his mind, after seriously thinking about it for two weeks.
    • These are the sells shorts and the pressure from Wall Street in general that initially prompted him to delist Tesla from the stock exchange. He also regularly speaks out against Wall Street and the financial world.

“For small investors”

The important thing : a letter from Cathie Wood.

  • The famous investor who was at the head of the company Ark Invest sent a letter to the CEO of Tesla, he explained, during the trial, adding that he was one of the most influential people who opposed the takeover. He writes that investors do not appreciate this action, in other words.
  • Musk pitches his entire three-hour defense to small investors. “I thought it was important to respond to their wishes (to stop the plan, editor’s note)”, commented Musk. There, too, it will be Cathie Wood’s foot: “he represents small investors”, he added to describe the investor and answer the question if he got returns from small investors, reports Market Observation.
    • Small investors, or “retail” investors, who are also complaining against him, by the way. But he presented himself here as their representative and their protector, while he was one of the richest men in the world, slipped away. Market Observation in an opinion piece titled: “Elon Musk’s Test Shows He Doesn’t Live in the Real World.”
  • “I am afraid, on receiving the article from Financial Timesthat the information was leaked and some investors did not know that I was planning to take the company private, which could harm other investors, especially small shareholders”, he pleaded again, sent by BBC.
    • This refers to an article from FT who reported on his meetings with the Saudis and the part they intended to play in the business. Musk said he didn’t want investors to “suffer” and thus went public with his plan. Such a buyback for the purpose of taking a company off the stock market drives up the price of a stock – he doesn’t want to shut out small investors, in other words.

Cathie Wood and Tesla, a long story

The detail : Cathie Wood defends her interests.

  • “In Musk’s alternative universe, ARK Invest, which manages about $16 billion in assets in several ETFs, is an alternative for small investors”, says the editorialist of Market ObservationTherese Poletti (which is not her first post against Tesla and Musk).
  • In fact, Cathie Wood has a strong interest in keeping Tesla on the stock exchange. This is the third largest share of its main fund, Ark Innovation. Wood is an ardent teslaphyle: he believes that the value will continue to explode (five times, even 7 times in a few years), especially thanks to a fleet of robot taxis and autonomous trucks.

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