Elon Musk considering taking Tesla private, TSLA stock trading halted

Adjust Comment Print

If Musk can't prove the allegedly secured funding at $420 per share, he may be accused of market manipulation or market fraud.

Musk in a letter to employees August 7th, 2018, "As the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company".

The two pieces of news helped move shares of Tesla up almost 6% in trading Tuesday, to $362 apiece. This would enable you to still share in the growing value of the company that you have all worked so hard to build over time.

Supporters of Musk and the company view him as a visionary akin to Apple co-founder Steve Jobs, while critics have likened him to a "Wizard of Oz" like figure who has yet to turn a profit.

When the tweet-sized bombshell hit, Tesla's stock was already trading higher thanks to reports that a Saudi investment firm had amassed a 3 to 5 percent stake in Tesla. He also stated that this is not an attempt to assume more control over his company - Musk owns approximately 20 percent of Tesla right now, and he doesn't see that changing after the company goes private. They are also shielded from the ups and downs of the stock market.

When another person tweeted that going private "saves a lot of headaches", Musk replied, "Yes".

The SEC did not immediately respond to a request for comment on Musk's tweet. Based on 24 analysts polled in the last 3 months, 10 are bullish on Tesla stock, 6 remain sidelined, while 8 are bearish.

Despite the unfolding media "shitshow", Musk still seems to view privatization as an "enormous opportunity for us all".

Saudi Arabia Inaugurates 8 Projects in Yemen’s Al-Mahra
The government-supported military coalition denied responsibility for the attack. The disregard of worldwide humanitarian law in Yemen can not be tolerated.

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.

"Elon Musk does not want to run public companies", Munster said. If shareholders approved the deal, it would remove Tesla from Wall Street scrutiny, eliminating the need to publicly disclose its earnings and - for Musk - the requirement to explain himself to shareholders.

The electric auto maker reported revenue of $4 billion in the second quarter of 2018, with $2.2 billion in cash in hand.

Analysts took Musk at his word.

After rising as much as 8.5 percent, the company's shares gave up some of their gains.

This is especially true for a company like Tesla that has a long-term, forward-looking mission.

Elon is right - going private would certainly reduce distractions surrounding the company's day-to-day activities, even if some of those concerns are valid.

However, he concedes Musk has good reason to take Tesla off the public markets, and he's established precedent through SpaceX and The Boring Company.

Comments