August 3, 2021

Tesla and General Electric soar on the stock exchange after their managerial changes

Tesla and General Electric soar on the stock exchange after their managerial changes

The actions of the automaker Tesla and the business conglomerate General Electric soared on the New York Stock Exchange today, awarded by investors after the changes in their management positions that have been released in the last hours.

Of the two, Tesla was the most advanced, 17.35%, in reaction to the agreement of its founder, Elon Musk, with the US securities authority. to close the case for open fraud against him in the wake of his controversial Twitter messages in August, in which he reported his possible intention to remove Tesla from the stock market.

Musk resigned this Saturday to the presidency of the board of directors of his firm for the next three years, which will be replaced by an "independent" person, but remains as CEO (CEO, in English).

In addition, Tesla will appoint two independent directors for its board of directors, establish a "new committee of independent directors, and place more controls and processes to supervise Musk's communications."

The SEC had sued the businessman to consider that his messages on August 7, in which he announced his intention to take Tesla out of the market for the existence of investors who would pay 420 dollars per share to the shareholders of the company, was an act fraudulent that temporarily inflated the value of the shares.

On the other hand, General Electric shares advanced by 7.09% after the announcement that its president and CEO, John Flannery, had been replaced by unanimous vote by H. Lawrence Culp Jr., who was the executive director and president of the company. Danaher Corporation, one of its competitors, for 14 years.

In addition to replacing Flannery, who tendered his resignation, GE's board of directors appointed Thomas W. Horton, former president and chief executive officer of American Airlines, as CEO.

The US group also announced that it will not meet its earnings forecasts this year due to the evolution of its energy business (GE Power), despite the fact that the rest of its divisions are evolving as expected.


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