How much will Elon Musk’s divorce cost Tesla Motors Inc (TSLA)?

Tesla Motors Inc Elon Musk is going through another divorce and it looks like the man is plagued by seven fictitious wives hubbub. The latest Monday news revealed that Musk’s current wife (he’s had others in the past), actress Talulah Riley, has filed for divorce in Los Angeles. Thousands of people go through a divorce every day and it doesn’t make the headlines; however, if you are the CEO of a company that wants electric cars resume our roads, your personal belongings could end up in the public domain.

The news of Musk’s potential divorce is particularly worthy of attention because of how it could affect Elon Musk’s finances and by implication, Tesla Motors’ finances. When most people file for divorce, they usually argue over who gets the house, the car, and how the commons are divided, among other things. The situation is no different in the case of Musk and Riley, except that the future ex-wife is heading for Musk’s jugular with an alleged $ 13 billion settlement.

How much will Elon Musk’s divorce cost Tesla?

Problems on the home front usually affect the performance of workers in the company – whether they are junior employees or senior managers. In fact, studies have shown that there is a direct correlation between the divorce of a CEO and the performance of his company. In 2013, a long piece on the impact of CEO divorce on shareholders was published on the Harvard Law School Forum on Corporate Governance and Financial Regulation website.

The authors noted that shareholders should not ignore the personal lives of CEOs and that events in the personal lives of CEOs can influence investment decisions. The authors noted that a divorce can affect a CEO and his business in three main ways.

The first is that a “CEO with a significant stake in a company could be forced to sell or transfer part of that stake to meet the conditions of a divorce settlement” – it should be noted that Musk holds a huge stake. in Tesla Motors. The second effect is that “divorce can affect the productivity, focus and energy levels of the CEO.” The third effect is that “divorce can influence a CEO’s attitude towards risk; depending on how the divorce settlement is funded. “

How much will a divorce cost Musk?

Elon Musk might turn out to be the exception, not the rule, but the circumstances surrounding his relationship with Riley suggest otherwise. For starters, Elon Musk had experienced what was considered America’s most complicated divorce when her marriage to Justine Musk crashed. As if that weren’t enough, Musk has been married to Talulah Riley twice and it looks like he will divorce twice as well.

Musk and Riley first married in 2010 before divorcing in January 2012. They were married again in July 2013 and Musk filed for divorce on January 1, 2015 with an offer to pay him $ 16 million in cash. , as agreed in the prenup. That January 2015 divorce was dismissed in April 2015, but it looks like Riley only retired to reunite. Now Riley has filed for divorce, she’s not talking about prenup, she wants spousal support, attorney fees, and Musk may have to write a check for $ 13 billion. Musk has 30 days to respond to the court filing, but Tesla Motors investors are unlikely to wait that long to vote on the matter with their funds.

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