Tesla hired the company Joele Frank, specializing in public relations crises, to solve problems related to leaving the stock market. The information is from the journalist Charmes Gasparino of Fox Business, who released the information on Wednesday (22) in his Twitter account.
According to information from the journalist, the board of the automaker would have hired the agency to repair the company's image & # 39 ;. Joele Frank confirmed to Business Insider that he works with Tesla, but denied that it concerns arranging damage in connection with the image of the company led by Elon Musk.
Scoop – crisis communication company Joele Frank is specifically retained by the special committee of the @Tesla board to image repair as company privatization tries more on this w @LizClaman @FoxBusiness 330pm
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– Charles Gasparino (@Casparino) August 22, 2018
Tesla is experiencing a crisis, not only for its image, but also for management and financial problems. From problems in achieving the milestone of production of 5,000 Model 3 per week at the beginning of the year, to the record strong loss in the second quarter of the year, with a loss of $ 717.5 million.
However, the fad of the current crisis began on 7 August when CEO Elon Musk reported in his personal Twitter profile that he was planning to close the capital of Tesla. This not only caused concern about the company's board of directors, who said that he did not know the move, because it led to the firing on the shares of the maker. Musk's idea was to increase the stock to $ 420, an increase of 22 percent over the price of the day.
He reported that he was negotiating with the Saudi sovereign fund on the financing needed to take this step and thus make the statement.
Although it helped to increase the capital of the company at the time, this announcement caused a crisis within the company. Firstly, because Musk had the Securities and Exchange Commission (SEC), the American regulator of the stock exchange, investigate Tesla and knows the truth of the fact.
Secondly, this caused a rumor that Tesla was in the process of filing for bankruptcy and this would be a risky step to save the neck of the company. Such information has meant that even the suppliers of the company have worried about the financial health of Tesla.
Even if Musk confirms in every interview that the manufacturer does not claim bankruptcy at all, the market does not seem to give a voice to the CEO and he continues to believe that this can happen. That is why an external company can help to ensure the "roja" of Tesla. The company is currently being investigated by the SEC. If the bureau comes to the conclusion that Musk's unofficial announcement was a maneuver to increase Tesla's share on the stock exchange, the company can get a millionaire fine.
source: twitter, Business Insider
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