Timeline: Tesla, thanks to Elon Musk, had an insane month

In This Article:

Tesla, the pioneering electric car maker, got off to a good start this August.

During the second-quarter earnings call on Aug. 1, CEO Elon Musk doubled down on the promise to make Tesla (TSLA) profitable toward the end of this year. Restrained and subdued, he also personally apologized to two analysts he had lashed out at in May. All these factors sent Tesla stock soaring 16%, its largest one-day gain since March 2013.

Bullish sentiment continued as Saudi Arabia sovereign fund took a sizable stake in the cash-burning machine. Then Musk sent out a bombshell tweet of nine words that would change the company stock’s trajectory.

“Am considering taking Tesla private at $420. Funding secured.” (He later added: “Investor support is confirmed.”)

The stock initially shot up to over $375 per share. One month later, Tesla’s share closed at $263.2 on Sept. 7, down 30.6% from its peak following the tweet.

Here is how Tesla’s roller coaster ride played out from Aug. 7 to Sept. 7:

Tesla stock since Musk's tweet
Tesla stock since Musk’s “funding secured” tweet. (Graphic: Krystal Hu/Yahoo Finance)

Tuesday, Aug. 7, 2018

Hours after Musk tweeted his plan and added shareholders could either to sell at $420 or hold shares to stay with Tesla as it goes private, the company put out a blog post to explain the plan.

“Being public means that there are large numbers of people who have the incentive to attack the company,” Musk wrote. The executive with a high ego has been struggling with short sellers, who bet the company would fall. He said the plan would “ultimately be finalized through a vote of our shareholders” and he believes two-thirds of current shareholders would stay with Tesla in the transition.

Following these statements, Tesla’s stock price surged, closing at $379.57 per share on Tuesday, a nearly 11% jump from the day before.

Wednesday, Aug. 8, 2018

While the tweet attracted thousands of “likes” on the social media platform, it also drew the attention of the U.S. Securities and Exchange Commission (SEC). Regulators soon followed up by inquiring whether Musk really had “funding secured,” the Wall Street Journal reported. Tesla stock fell 2.4% on the news and dropped by another 4.8% on Thursday.

Monday, Aug. 13, 2018

Things seemed more promising as Musk announced Tesla has hired Silver Lake and Goldman Sachs as financial advisers, and Wachtell, Lipton, Rosen & Katz and Munger, Tolles & Olson as legal advisers, to work on a plan to take Tesla private. The New York Times on the same day reported that some members of Tesla’s board were “totally blindsided by Mr. Musk’s decision to air his plan on Twitter.”

<span>Azealia Banks, Elon Musk, and Grimes. (Photo: Consequence of Sound)</span>
Azealia Banks, Elon Musk, and Grimes. (Photo: Consequence of Sound)

A subplot of the public company’s massive buyout plan was spotted from a rapper’s Instagram account. Singer Azealia Banks posted about her weekend at Musk’s house visiting musician Grimes, Musk’s girlfriend. She told Business Insider that she “saw him in the kitchen tucking his tail in-between his legs, scrounging for investors.”