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Could Elon Musk's Divorce Affect Tesla's IPO?
In brief: Sources are saying that the upcoming Tesla Initial Public Offering will be for between $1 and $1.5 billion or $10-$12/share, but all of this could be in jeopardy because of CEO Elon Musk's pending divorce.
Divorce proceedings for Elon and Justine Musk began this week (they separated in 2008) and some think that it's possible that, because of California's community property laws, Musk could lose a significant portion of his shares in all of his companies - including Tesla Motors.
If he did lose a large shareholding, that would default Tesla's recent Department of Energy loan and could cause the S-1 filing for IPO to go in the round file.
Former Tesla CMO Darryl Siry often talks about Tesla on his blog and he gives an insider's guess as to the IPO numbers. Tesla's board recently approved a 1-for-3 reverse split to consolidate shares, which affects the IPO outcome and number of shares positively.
Another website, Venture Beat, speculates on the divorce's effects on the IPO filing. Most likely, the Musks will come to an equitable agreement without the ruination of Elon's companies, but if things turn sour, it could get rocky.
And so ...
Tesla Motors is always an entertaining venture, to say the least. Between their CEO's unpredictability, the company's marketing bonanzas, and the always-active rumor mill, there is always something happening at Tesla.
Photo credits: Tesla Motors
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