Elon Musk, CEO and former chairman of the billion-dollar company, Tesla, has been getting a lot of attention lately. Musk was forced to step-down from chairman after his tweet about taking Tesla private, which ended up costing him a $20 million dollar fine to the SEC (Security and Exchange Commission). Why did this tweet cost him $20 million? Well it was private information about Tesla that he released to the public which mislead investors causing the Tesla stock to skyrocket. Before he released the tweet on August 7th, Tesla was under intense finical trouble after their stocks were down 25 percent. Releasing the company information was illegal even though his intentions were good.
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Just one month later, Musk was seen smoking marijuana while with host Joe Rogan, on his podcast. The podcast was filmed in California, where smoking marijuana for recreational purposes is legal. Rogan jokingly asked Musk if he couldn't smoke, "because of shareholders," but Musk proceeded to smoke anyway. Musk referred to selling his stocks at $420 in his tweet in August, where 420 is a reference to marijuana. Rogan also asked Musk, "How does it work? Do people get upset with you for certain things?"After the podcast was shown, Tesla's stock went down 9 percent that week, Rogan's question was clearly answered. (Click here to view the whole article)
Musk did some very questionable things over social media and on a podcast and he and his company took the hit from it. This raises the question of do you think CEO's and/or owner's personal life dictate how their company's stock does? Why or why not? Also, do you think that Musk should of received a more severe penalty for his illegal tweet? Why or why not? Finally, why did you think Musk wanted to sell his stocks at $420?
(Click here to view the whole article)
Just one month later, Musk was seen smoking marijuana while with host Joe Rogan, on his podcast. The podcast was filmed in California, where smoking marijuana for recreational purposes is legal. Rogan jokingly asked Musk if he couldn't smoke, "because of shareholders," but Musk proceeded to smoke anyway. Musk referred to selling his stocks at $420 in his tweet in August, where 420 is a reference to marijuana. Rogan also asked Musk, "How does it work? Do people get upset with you for certain things?"After the podcast was shown, Tesla's stock went down 9 percent that week, Rogan's question was clearly answered. (Click here to view the whole article)
Musk did some very questionable things over social media and on a podcast and he and his company took the hit from it. This raises the question of do you think CEO's and/or owner's personal life dictate how their company's stock does? Why or why not? Also, do you think that Musk should of received a more severe penalty for his illegal tweet? Why or why not? Finally, why did you think Musk wanted to sell his stocks at $420?
I really like this question in your post, Colin: "This raises the question of do you think CEO's and/or owner's personal life dictate how their company's stock does? Why or why not?" It's a great question, and we could also extend this to other roles in society, too (elected officials, professional athletes, etc.).
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