Tesla stock has been falling since the company announced it would be laying off 9% of its workforce.
It’s been a rough year for Tesla. In June, CEO Elon Musk was forced to step down as chairman of the company after his erratic behavior led to a Securities and Exchange Commission investigation. The next month, the electric car maker announced that it would be laying off 9% of its workforce. On top of that, Tesla stock has dropped 25% since April and is now trading at $230 per share.
So what exactly is going on with Tesla? Is this just a bump in the road or is there something more going on?
What is Tesla’s current situation?
Tesla has had some serious problems over the last few months. In June 2018, Elon Musk tweeted that he was considering taking Tesla private at $420 per share. At first, he said funding had been secured for such a move but later backtracked and said it was all a joke.
According to Reuters, Musk’s tweet about taking Tesla private “violated [Securities and Exchange Commission] rules against misleading statements… about material corporate events.” As part of his settlement with the SEC, Musk stepped down as chairman of Tesla but remains CEO.
