Musk tweets he may take Tesla private and shares soar

Elon Musk

Being public "also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term", Musk said.

Tesla CEO Elon Musk's surprising proposal to take the electric vehicle maker private has prompted regulators to suspend trading in the company's stock.

We reached out to Tesla to find out what this all means and will update when we hear more.

Tesla boss Elon Musk has shocked the market with a bombshell tweet saying he is mulling taking the electric auto company private.

The Tesla CEO wrote a lengthy note to all of his staff stating that he had discovered someone working intently on causing malicious damage within the company's ranks.

Also on August 7, the Financial Times reported that the Public Investment Fund, Saudi Arabia's sovereign wealth fund, had built a $2 billion stake in the electric-car maker this year.

For current shareholders, Musk said he would institute a provision ensuring that their stock be converted into private shares, adding he would 'ensure their prosperity in any scenario'.

He tweeted minutes after it was reported that Saudi Arabia's sovereign wealth fund had taken a stake of up to 5pc in Tesla, a holding worth as much as $2.9bn (£2.2bn). It finished up 11%, at $379.

Tesla did not immediately respond to a request for clarification. "Elon Musk doesn't have the financing, and the SEC is going to crush him for it".

Trump celebrates Kelly's first full year as chief of staff
Kelly has often joked publicly about how working for Trump is the hardest job he's ever had, including those on the battlefield. Trump has reportedly considered replacing Kelly, with whom he's clashed over management style.

"We're working on a new Tesla mini-car that can squeeze in an adult", Musk tweeted on Sunday, replying to a user who asked him about a "Model X Radio Flyer" toy auto. His "funding secured" comment was "very specific", said Pitt. Shares could be bought or sold periodically on a private marketplace, Musk said.

Camera IconTesla's existing shareholders could be given the option of retaining a stake in the company through a special fund. BMM Bloomberg reports that the PIF is now one of Tesla's top 8 shareholders.

Mr Musk has had feuds with regulators, critics and reporters, and questions remain about Tesla's production and manufacturing difficulties, long-term demand for its cars and uncertainty over funding.

Without an official statement to back up the tweet, Nasdaq halted trading in Tesla shares shortly thereafter. Musk has insisted Tesla has no such need.

Mr Musk's announcement was initially met with widespread scepticism, with many people connecting the proposed price to 420 being a common slang term for marijuana.

Mr Musk has long raged against short sellers and mentioned his desire to be rid of them as one of his reasons for taking Tesla private. "This is not how you do it and it makes you wonder how seriously to take it", said Erik Gordon, a business and law professor at the University of MI.

"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 hard to accommodate investors quarterly expectations".

Beyond skyrocketing Tesla's valuation to over $70 billion at $420 a share, taking the company off of the public markets would relieve some of the pressures of having to report earnings and face volatility from traders, thus giving the company better financial footing. Before Musk's tweet, Tesla had a market value of $58 billion, already higher than that of General Motors or Ford, even though those companies are significantly larger and more profitable.

Related News:



Most liked

Willian aims to stay at Chelsea and confirms bid from Barcelona
However, the Nigerian worldwide is not sure of pinning down a shirt under Sarri, who favours a different tactical system. But I think more good [news] than bad.

Iran Receives More European Airplanes Ahead of U.S. Sanction Renewal
Protests have broken out in Iran since the beginning of the year over high prices, water shortage, power cuts and alleged corruption.

Rose pulls out of WGC-Bridgestone
And it was the seventh time he shot 66 or better in the opening round of this tournament; he won five of the previous six times. The company next year sponsors the Senior Players Championship at Firestone, while the WGC event moves to Memphis, Tennessee.

Seven people injured in Venezuelan president's murder attempt
Soldiers at the event were then seen running in different directions before the televised transmission was cut off. State television showed him cutting short a speech as hundreds of soldiers broke ranks and scattered.

Trump taunts LeBron James on Twitter: 'I Like Mike'
James is considered by many to be the greatest player in basketball history, rivaled by Chicago Bulls legend Michael Jordan . The focus now switches to how the four-time MVP will respond , if he responds at all, to the President's petty insult.

Pompeo: Despite tensions, Turkey remains a key USA ally
President Donald Trump and Vice President Mike Pence, who shares Brunson's evangelical Christian faith, have made his release a priority.

Google allegedly working on censored search engine for Chinese market
Accordingly, Google started to soften its rhetoric and tone on China within a couple of years after the Gmail hacking. Facebook's website is also banned in China but the company has also signalled its interest to enter the market.

Apple becomes world's first trillion-dollar company
Since Cook became CEO, Apple's annual revenue has more than doubled to $229 billion while its stock has quadrupled. Apple on Thursday become the first United States company worth more than $ 1 trillion on a public stock market.

China says tariff threat against US 'justified'
This showed that China was trying to find ways to avoid escalating the trade war , and leave room for negotiation. Tsinghua University economist Yuan Gangming said the measures China had taken were reasonable.

Manchester City chase visa for Douglas Luiz amid transfer frustration
We have been enjoying it from the first day, learning and improving on what he wants. He netted 17 goals as City won the Premier League and the Carabao Cup last term.

Russia to deploy military police on Occupied Golan Heights
But they entered a downward spiral in recent times when Israel intensified its bombing of military infrastructure in Syria. The military described it as a "triangle area" near the borders of Israel, Syria and Jordan in the occupied Golan Heights.

What does interest rate rise mean for mortgages and savings?
However, just like the rise in November, providers are likely to be selective with the rates they choose to increase. In theory, an interest rate rise is good news for savers , who should see a higher return for their investment.

The US banned 3D printed guns just in the nick of time
Cody Wilson , the founder of Defense Distributed , first published downloadable designs for a 3D-printed firearm in 2013. Senators added their voices later in the day, urging the president to reverse the settlement decision.

Apple hits the $1T milestone
But it might not have happened if he hadn't evolved into a more mature leader after his exit from the company in 1985. Saudi officials have said the IPO would value Saudi Aramco, as the company is often called, at about $2 trillion.

Carr Fire: What we know Thursday
After 20 days of destruction, the Ferguson Fire in central California was only 39% contained as of Wednesday. And California has already spent a quarter of its firefighting budget for the year in the month of July.