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As I read this, Musk faced, as the worst outcome, being banned from being CEO of any publicly-traded company, which would clip his wings pretty badly. As it is, he has to step down as chairman of Tesla (but is still on the board) and pay a fine, and Tesla has to pay a fine. I don't see any mention of staying or not staying CEO, so I think he's still able to keep that job. (But subject to the board, which is his new boss.) This is not exactly a slap on the wrist, but it's not the disaster for him it could have been:
He can survive this (he's a billionaire), and if he is still CEO, he's still the boss, just not the supreme boss.
Now they just need to take his phone away from him....
The quick resolution might catch new shorts off guard. However, the whole episode is still a negative and poor for confidence. It suggest to me a quick 1-2 day pop and then possible continuation toward prior low support. I would anticipate over the medium term range bound to bearish action to continue until new information changes things, i.e. more proof they are hitting targets or something.
I think that, in most cases, it is risky to make trading decisions relating to the stocks of particular companies based on recent and unexpected news. Too much can go into the market's valuation of a particular security for any news item to have a clear import (usually... .)
In the case of TSLA, you can be sure that it is receiving an enormous amount of attention right now from all over the spectrum of market participants, from highly sophisticated to outright dumb. I think that the complications of its business prospects are varied enough already, and then all these Elon Musk developments add more to it. So how the market will respond is an interesting guessing game.
You could easily make a case for a strong advance now (relief that things have been resolved), and also a case for a gradual or not-so-gradual collapse (ongoing production and product quality problems, CEO shown once again to be a brilliant but possibly unsteady flake, etc. -- pick your narrative, there are many to go around.)
(Note to Elon Musk fans: I am not saying he is a flake, just that it's one possible narrative.)
Time will tell, but of course by then it will be too late.
I am just watching with occasional interest. No doubt there will be more, and it is sure to be unusual.
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I know TSLA vs TSLAQ is like religion and I'm not trying to take sides, but if you search the internet you'll find lots of stories complaining about many of the issues in this article. Pre-registered cars being delivered as 'new'. New cars being delivered with defects. The 'Wonky Wheel' issue, the melting screen issue etc. But the biggest of all seems to be that getting a Tesla repaired is almost impossible due to lack of major parts.
My opinion, Tesla’s should be better controlled at physical stores to insure these crazy quality problems are solved before they reach the customer. But that is against the original Tesls idea of virtual sales.. it all points to poor quality control at plant!
.)
I think that the complications of its business prospects are varied enough already, and then all these Elon Musk developments add more to it. So how the market will respond is an interesting guessing game.
