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Elon Musk's latest big idea is daring even by his standards: He wants to turn Tesla into a private company.He stunned investors on Tuesday with a tweet saying he had already lined up the funding, and he told employees that it would relieve the electric car company of the "enormous pressure" of Wall Street's expectations.In a letter to Tesla workers that was posted on the company's blog, Musk called his idea the "best path forward.""As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders," he wrote.He also said trading its stock publicly "means that there are large numbers of people who have the incentive to attack the company." Musk has complained repeatedly about short-sellers, who profit when Tesla stock drops.Musk, the CEO and largest shareholder, said on Twitter that the private funding valued Tesla at 0 per share. Tesla is already the most valuable automaker in the United States.The early afternoon tweet sent Tesla stock spiking by almost 9%. Trading in Tesla was halted for more than an hour before Tesla posted Musk's letter to employees on its blog. It finished up 11%, at 9.The stock had climbed slightly earlier in the day after the Financial Times reported that Saudi Arabia has quietly built a big stake in the company.At first, Tesla had declined comment on Musk's tweet, even as he casually engaged Twitter followers with more posts about his plans.Musk said that he hoped all current investors would stay with Tesla even if it went private. He said he would create a special fund to allow that. Fidelity, the investment firm, has such a fund for its stake in SpaceX, a separate private company also run by Musk.He pledged to hold on to his stake in the company, about 20%, no matter what. He said he was "super appreciative" of Tesla shareholders, and vowed to "ensure their prosperity in any scenario."Tesla has burned through cash while struggling to produce the Model 3, its lowest-priced electric car. That has driven the stock lower and raised concerns about whether Tesla will need to sell more shares to pay for expansion. Musk has insisted Tesla has no such need.Musk has also clashed repeatedly with critics, especially investors who have taken short positions on the stock, meaning they benefit when the price falls. He clashed with analysts on a contentious call after Tesla reported earnings three months ago.Gene Munster, managing partner at Loup Ventures and a top tech analyst, said the odds that Musk will take Tesla private were about one in three. But he said the idea made a certain amount of sense."Musk does not want to run a public company," Munster wrote on his website. "His mission for Tesla (to accelerate the globe's adoption of sustainable energy) is both grand and long-term, making it difficult to accommodate investors quarterly expectations."It would cost about billion to take Tesla private at 0 per share. Before Musk's tweet, Tesla had a market value of billion, already higher than that of General Motors or Ford, even though those companies are significantly larger and more profitable.In fact, Tesla has turned a narrow profit in only two quarters since it became a public company in 2010. Musk has vowed that the company will start turning a regular profit in the second half of this year.In a 2013 report, the SEC said companies can use social media outlets to announce important information, so long as they comply with regulations and "investors have been alerted about which social media will be used to disseminate such information."The SEC issued that report after Reed Hastings, the CEO of Netflix, used a Facebook post to congratulate Netflix's chief content officer on record-breaking viewership. Netflix stock moved higher as a result.Tesla said in a regulatory filing in 2013 that investors interested in keeping up with Tesla should follow Musk's account.The SEC declined comment on Musk's tweet.Musk has a history of outrageous behavior on Twitter.On April 1, amid rising market concerns about a cash crunch at Tesla, he tweeted an email announcing that Tesla would have to file for bankruptcy. The tweet was apparently an April Fool's joke.Musk also faced intense public criticism after he suggested in a tweet that one of the rescuers of the Thai soccer team trapped in a cave was a pedophile.He later deleted that tweet and apologized for that exchange, but at least one analyst suggested Musk needed to get off Twitter to restore investor confidence in the company.After Musk, the next largest shareholders in Tesla are the mutual fund giants T. Rowe Price and Fidelity, with stakes of more than 9% and 8%, respectively, according to Thomas Reuters Eikon.Scottish money manager Baillie Gifford, which recently urged Musk to focus less on tweeting and more on running the business, is the fourth-largest shareholder, with a nearly 8% stake. Chinese tech giant Tencent owns almost 5%.James Anderson, a Baillie Gifford fund manager who recently called out Musk's tweeting in an interview with Bloomberg, had no comment about Musk's tweets on Tuesday. Fidelity and T. Rowe Price also declined comment.— CNNMoney's Donna Borak contributed to this report.The-CNN-Wire 5277
Federal judges have ruled that President Trump’s order to exclude people in the country illegally when redrawing congressional districts violates the law. A panel of three federal judges in New York on Thursday granted an injunction stopping the order, saying the harm caused by it would last for a decade. The judges prohibited Commerce Secretary Wilbur Ross, whose agency oversees the Census Bureau, from excluding people in the country illegally when turning over figures used to calculate how many congressional seats each state gets.The decennial census is used to allocate congressional seats, along with federal funds. 634
Federal prosecutors announced Wednesday that they have struck a non-prosecution agreement with National Enquirer parent company American Media Inc., effectively ruling out charges for the tabloid publisher over its role in securing hush money from President Trump's longtime personal lawyer Michael Cohen.As part of the agreement, AMI admitted to making a payment of 0,000 in cooperation with members of Trump's presidential campaign in order to prevent former Playboy model Karen McDougal's claims of an affair with Trump from being made public during the 2016 race.AMI chairman David Pecker is a longtime friend of Trump's, and the Enquirer was one of Trump's most reliable and enthusiastic media boosters during the campaign.Pecker met with Cohen "and at least one other member of the campaign" in August of 2015, according to the non-prosecution agreement, which was struck with prosecutors from the office of the U.S. Attorney for the Southern District of New York."At the meeting, Pecker offered to help deal with negative stories about that presidential candidate's relationships with women by, among other things, assisting the campaign in identifying such stories so they could be purchased and their publication avoided," the agreement read. "Pecker agreed to keep Cohen apprised of any such negative stories."Details of the payment to McDougal emerged in 2016, mere days before the election, when the Wall Street Journal reported about her agreement with the Enquirer. At the time, AMI insisted that it "has not paid people to kill damaging stories about Mr. Trump." The reported agreement drew wider attention earlier this year following a story published by The New Yorker, which shed light on the tabloid practice of "catch and kill," wherein a publication purchases a story purely so it won't run. McDougal signed a contract worth 0,000, granting AMI "exclusive ownership of her account of any romantic, personal, or physical relationship she has ever had with any 'then-married man,'" the New Yorker reported.The news of the non-prosecution agreement comes the same day that Cohen was sentenced to three years in prison for his role in the matter.In a statement, the SDNY said, "Assuming AMI's continued compliance with the agreement, the Office has agreed not to prosecute AMI for its role in that payment."A spokesperson for AMI declined to comment. 2421
FALLBROOK (CNS) - A fire broke out Wednesday morning in the garage of a Fallbrook home, authorities said.The non-injury blaze was reported around 5:45 a.m. at a single-story home on Wintergreen Lane off Via Del Robles, west of Interstate 15, NorthCounty Fire Protection District Capt. John Choi said.It took crews roughly an hour and 15 minutes to fully extinguish the fire, which started in the garage and eventually spread to the attic, Choi said.A damage estimate was not immediately available.Investigators from the sheriff's Bomb/Arson unit were sent to the scene, and an investigation into the cause of the blaze was underway. 640
ENCINITAS (CNS) - At least one person was killed in a three-vehicle crash on the northbound San Diego (5) Freeway in Encinitas Saturday morning that left one of the vehicles completely destroyed.The crash was reported near Manchester Avenue at 2:35 a.m. and involved a Toyota Corolla, a Cadillac Escalade and a third dark-colored vehicle that was completely destroyed, according to the California Highway Patrol.Details of what led up to the crash were not available.All northbound lanes of the freeway just south of Manchester Avenue were closed until further notice. 576