Tesla Motors recently made its first acquisition, in the form of a Grand Rapids, Michigan-based company called “Riviera Tool.” Unfortunately, a substantial number of investors seem to have confused the company with one trading on the penny stocks.
The Detroit Free Press explains that shortly after Tesla Motors acquired Grand Rapids company “Riviera Tool LLC,” the stock of the similarly-named “Riviera Tool Co.” rose 4,400 percent, to 22 cents per share.
The only problem is: the tooling company that Tesla Motors acquired no longer goes by the name “Riviera Tool Co.” Investors ended up sinking so much money into the company, thinking that it was the “Riviera Tool LLC” which Tesla Motors had acquired, that the FINRA (Financial Industry Regulatory Authority) was forced to order a halt on the now-defunct company.
The Free Press reports that it’s uncertain whether the FINRA will allow trading on “Riviera Tool Co.” to resume, or whether they will undo any trading done in the wake of Tesla Motors’ acquisition.
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