Every Tesla bear who watched in disbelief as the company’s shares rocketed higher on Monday should be thanking U.S. District Judge Alison Nathan.
That’s because Nathan, who is ultimately responsible for ratifying Musk’s sweetheart deal with the SEC, has reportedly asked both Musk AND the SEC to explain “why [the deal is] fair and reasonable.” An explanation that – we’re sure – many market participants and securities law experts would also be eager to hear.
Tesla shares dropped 5.3% on the news, which has reopened the possibility that Musk might be outed as Tesla CEO, threatening the considerable “Musk premium” that has for years been the most relevant factor in determining the value of Tesla stock.
