“If March doesn’t go gangbusters for Tesla they are in real trouble, especially without raising,” said Darius Brawn, who worked as a portfolio manager for Citadel, SAC and Sharpe Point.
The bond payment comes amid the Securities Exchange Commission (SEC) asking a judge to hold Musk in contempt for violating a previous settlement agreement, Musk took to Twitter to respond by saying that “Something is broken with SEC oversight.”
Tweets have placed Musk in hot water with the financial regulator–notably last year when he sent a tweet stating that he would like to take the company private, immediately causing intense reactions from investors and a surge in the electric car maker’s share price. As part of a $20 million fine settled with the SEC, Musk must get prior approval before sending tweets.
According to some analysts, this latest legal infraction could once again put the electric carmaker and Musk in a negative spotlight–something both could do without at the present time.
“With Tesla/Musk settling with the SEC in October this black cloud was in the rear view mirror for the company (and investors) and now this latest tweet (which most investors shrugged off at the time) represents a wild card that could potentially bring this tornado of uncertainty back into the Tesla story until resolved,” Wedbush analyst Dan Ives said in a note sent Tuesday morning. “At this point we are more concerned around this issue being another distraction for Musk & Co. as the company navigates one of its most challenging periods in its history and certainty did not need this news.”
For more news and strategy, visit our current affairs category.
