Hard times for Tesla ahead. They are facing investigation and the competition surge

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Hard times for Tesla ahead. They are facing investigation and the competition surge

Will Jack Ma exit from Ant Group to revive its big IPO?

  • Reuters reported that Ant Group is looking for ways to divest Jack Ma’s stake in the company. This will help the fintech giant to draw a line under Beijing’s scrutiny of the business after it pulled Ant’s listing in November, which was set to be the world’s largest IPO.
  • Ma owns about 10% of Ant Group worth billions and has also significant control over e-commerce affiliate Alibaba (NYSE:BABA) which has one third stake in Ant.
  • Divestment options are to sell its stake to other investors in Alibaba or Ant, or transfer his stake to a Chinese affiliated with the stake.
  • Regulators began to show increasing interest in Ant Group in October, after Mr Ma criticized regulators, suggesting they were stifling innovation. This is the reason Ant Group’s IPO in November was ruined.
  • Ant’s affiliate company Alibaba was hit with a record fine of $2.8bn on Friday over monopoly concerns. Alibaba accepted the fine and vows to changes.
  • Overall, it seems like Jack Ma is under pressure from the Chinese government.