What lessons could India take from Tesla? #BusinessTitBits

Episode 37,   Oct 04, 2018, 08:53 AM

It was on 7th August 2018, that Elon Musk, the maverick founder of Tesla Motors tweeted, that he was considering taking Tesla private, by buying back its shares from the public at USD 420 per share, and that he had secured the funding for it. It was an impulsive tweet, with no basis whatsoever. It created a chaos in the American stock markets. Trading in the shares of Tesla was suspended and its share price fell, amidst chaos and confusion in the stock markets. It hurt shareholder interest and warranted strict action from the regulator. SEC, the American regulator of securities/stock markets swiftly got into action. It sued him for securities fraud and corporate misgovernance and decided that he was not fit to lead a company. With this incident, what lessons are there that India could take from India? Mr. Akhilesh Bhargava, Business Editor of HW Business and Finance shares his insights on the matter.