Elon Musk just tweeted he's considering taking Tesla private

Elon Musk considers taking Tesla private as stock jumps

Tesla CEO Elon Musk is laying out his rationale for possibly taking the company private, saying the move would free the electric auto maker to focus on long-term goals, rather than the quarterly concerns of Wall Street.

However, Musk explicitly said there is no plan to combine Tesla with SpaceX.

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". At $420 a share, Tesla would have a market cap of around $71 billion. 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.

Musk is Tesla's largest shareholder, with an approximately 20 percent stake valued at about $12 billion, according to S&P Capital IQ.

If the company were to go private, Musk said neither he, nor any current shareholder, would have a controlling vote in the new system. It also closely follows an announcement that Saudi Arabia's sovereign wealth fund has taken a 3 to 5 percent stake worth $2 billion in the company. On April 1 this year, Musk tweeted, "We are sad to report that Tesla has gone completely and totally bankrupt". CNBC also contacted a number of Wall Street banks and none of them was aware of any transaction or had committed to funding a leveraged buyout of Tesla.

In a Twitter direct message to Ars Technica, Musk confirmed he was serious about the proposal.

A spokesman for Tesla did not immediately return a request for comment.

Tesla's shares were at $362.74 prior to the share halt being lifted.

He also said he does not now have a controlling vote in the company and wouldn't expect a single shareholder to have one if the company were private. "The answer is no", Musk told investment analysts last week.

And yet it also left many questions unanswered, namely how Musk - who owns nearly 20 percent of the company - would be able to come up with the $66 billion necessary to complete the transaction.

In an interview with Bloomberg News in January 2015, he spoke of the benefits of running his closely held rocket company Space Exploration Technologies Corp. and his frustrations with having taken Tesla public in June 2010.

Going private would reduce the market pressure on Tesla, especially from short sellers who believe Tesla is set up to fail and are pursuing strategies to profit from Tesla's troubles. In 2013, he emailed SpaceX employees that he was "hesitant to foist being public" on the company "given the long term nature of our mission".

Related News:

  • Saudia suspends flights to Canada, escalating diplomatic spat

    Saudia suspends flights to Canada, escalating diplomatic spat

    Riyadh has also recalled its ambassador from Ottawa and has also expelled the Canadian ambassador in Saudi Arabia . State Department official said the United States had asked Riyadh for details on the detention of activists.
    Chelsea vs Manchester City

    Chelsea vs Manchester City

    Whatever their fitness issues, City looked slick in the sweltering London sunshine as they ran Chelsea ragged. Whether Sergio Aguero starts or not is debatable but he'll be well worth backing to score if he does.
    European Union  fights against USA  sanctions on Iran

    European Union fights against USA sanctions on Iran

    If the US wants negotiations, it should stop pressures and sanctions, Qasemi was quoted as saying by official IRNA news agency. The action completes the withdrawal from the unsigned JCPOA and resets American-Iranian relations to the status quo ante .
  • Paul Manafort’s Accountant Testifies She Helped Alter Financial Documents

    Paul Manafort’s Accountant Testifies She Helped Alter Financial Documents

    With offhand remarks, aggressive pushback and a need for speed, Judge Ellis has become a character in this trial himself. Though this case is not about Russian Federation or possible election conspiracy, it has captured Trump's attention.
    Tiger Woods, Phil Mickelson targeting $10 million Thanksgiving duel

    Tiger Woods, Phil Mickelson targeting $10 million Thanksgiving duel

    The two have been rivals over the years, but have been seen together paired up for practice rounds and sharing spots on the U.S. Details are starting to emerge regarding the high stakes one-on-one matchup between Tiger Woods and Phil Mickelson .
    Mexican officials: Airliner crashed after takeoff, no deaths

    Mexican officials: Airliner crashed after takeoff, no deaths

    Dozens were injured, Durango state officials said, and it appears that a strong wind brought down Flight 2431 . A spokesman for Aeromexico declined to disclose the passenger list or the nationalities of those on board.
  • Gates testifies that he embezzled money

    Gates testifies that he embezzled money

    According to multiple news outlets , Gates was asked on Monday if he was involved in criminal activity when working with Manafort. Gates and Manafort have known each other for two decades and ran a multimillion-dollar political consulting business.
    Woman fined $210 for wearing burqa in Denmark under new law

    Woman fined $210 for wearing burqa in Denmark under new law

    Since 1 August, Denmark's much-debated burka ban has provoked protests and criticism from human rights groups. Supporters of the law, meanwhile, claim the law will better integrate Muslims into Danish society.
    Child pulled from Tampa river dies, woman in custody

    Child pulled from Tampa river dies, woman in custody

    Multiple witnesses had called police about 30 minutes earlier and had reported seeing a woman throw the girl into the river. Denson is accused of stealing a car from an auto fix shop, then parking the vehicle on North Rome Avenue, police said .
  • Essential Rolling Out Android Pie Update Minutes After Google’s Announcement

    Essential Rolling Out Android Pie Update Minutes After Google’s Announcement

    Out of nowhere, Google just announced that the latest version of Android, Android P , is officially called Android 9 Pie . WellBeing, which is the highlight feature, is not going to be available with the Android 9 Pie immediately.
    Hot, Dusty and on Fire: Portugal's Heatwave Breaks Records

    Hot, Dusty and on Fire: Portugal's Heatwave Breaks Records

    In eastern Europe, Poland was also enduring unusually high temperatures as the hot African air pushed temperatures up to 34C. Some predictions have said certain regions could see highs of 48C, which would break Portugal's record of 47.4C from 2003.
    Rafa Benítez's angry message to Newcastle United owner

    Rafa Benítez's angry message to Newcastle United owner

    The 26-year-old told Newcastle's official website: "I am very happy to be a player for Newcastle". Newcastle United have bolstered their attack with the addition of Japan worldwide Yoshinori Muto.


Most liked

Containment Of Massive Mendocino Fire Not Expected Until September
In 2017, there were 3,662 fires in the same period, burning 90,340 hectares. The Mendocino Complex , which is 30 per cent contained, is still growing.

Athletes react to Donald Trump insulting LeBron James
The school, which is a joint effort of the LeBron James Family Foundation and Akron Public Schools, will benefit at-risk children. He was responding to remarks by then-Cavs star James and Curry, who both said they would not attend a White House reception.

9-Year-Old Robbed at Gunpoint While Working Lemonade Stand
The boy has been selling lemonade to raise money and buy a new lawnmower for his other weekend business. Deputies say the boy was approached by a black male teen wearing a camouflague hat and black shirt.

'Complete fabrication' he's anxious his son in legal trouble in Russian Federation probe
Sekulow also said that Trump has not decided whether he would voluntarily sit for an interview with U.S. He accused Mr Mueller of running "one of the most irregular investigations in US history".