Investors seem leery amid securities probes and questions about billionaire founder's frame of mind<\/b>
\nTesla’s stock price slid for a fourth straight day as investors digested reports of a federal securities probe and CEO Elon Musk’s emotional interview with the New York Times.
The Securities and Exchange Commission is reportedly investigating an August 7 tweet by Musk in which he proposed taking the electric car maker private and said he had secured funding for the transaction. The billionaire told the Times that no one at Tesla reviewed his tweet, which he said he typed while driving himself to the airport.
Asked if he regretted the tweet, he told the Times, \u00ab\u00a0Why would I?\u00a0\u00bb
The Wall Street Journal also reports that the SEC is examining if Tesla misled investors about production problem for its Model 3 sedan.
In Friday afternoon trade, Tesla shares were down nearly 9 percent to $305.49. As part of the plan to go private, Musk proposed paying stockholders $420 a share. The decline in Tesla shares since the executive floated the idea suggests investors are skeptical he can pull it off, analysts say. Tesla’s stock price is down 1 percent for the year.
Amid mounting questions about such a deal, Musk said that Saudi Arabia’s Public Investment Fund had expressed interest in participating. Tesla’s board has since created a committee of independent directors to evaluate the plan.
Musk repeatedly teared up during the Times interview, telling the newspaper that he almost missed his brother’s wedding as he worked 120-hour weeks and referring to an \u00ab\u00a0excruciating\u00a0\u00bb period of trying to meet the company’s vehicle production goals.
He also described his use of the drug Ambien to sleep, a topic he’s talked of before.
\u00ab\u00a0This past year has been the most difficult and painful of my career,\u00a0\u00bb Musk told the Times, which cited people briefed on the matter as saying Tesla is working to recruit an executive to take some of the heat off of Musk. \u00ab\u00a0If you have anyone who can do a better job, please let me know,\u00a0\u00bb Musk told the Times, adding: \u00ab\u00a0They can have the job.\u00a0\u00bb
Musk’s seemingly fragile psychological state put pressure on Tesla’s board to take action, said Erik Gordon, a University of Michigan business and law professor.
\u00ab\u00a0If the board does not get him out of this slot at a minimum on a leave of absence basis, I think the board is going to be seen by a lot of people who love the company as being derelict in their duties,\u00a0\u00bb he said. \u00ab\u00a0You can love the company, you can love Musk and hate having him be the CEO at this point.\u00a0\u00bb
Musk’s erratic behavior has drawn attention in other ways of late. In May he rebuked stock analysts for asking \u00ab\u00a0boring, bonehead\u00a0\u00bb questions, while in July he accused a British caver involved in the rescue of a Thai youth soccer team from a flooded cave of being a pedophile.
Although Musk apologized after both outbursts, they raised questions about his frame of mind.
— The Associated Press contributed to this report.<\/p>\n

\n

Similarity rank: 20<\/div>\n

Sentiment rank: 0.5<\/div>\n

<\/div>\n<\/div>\n