Elon Musk Declares Tesla May Go Private At $420 But No Final Decisions Yet
Tesla is one of the fastest growing companies in the world and it never stops innovating, brings the latest technology to the automobile industry as well as others. The way it unveiled the Tesla Roadster was a one of a kind experience for the company as well as customers and fans at the launch of the Tesla Semi Truck. However, there seem to be some changes coming through in the financial aspects of the company and how it is stacked for the public. In the latest, Tesla’s CEO, Elon Musk took to Twitter, stating that he wanted to take Tesla private.
With Tesla being private, the deal could value the company at $70 billion along with its ending relationship with the Wall Street. Elon Musks plan was shortly unveiled after the Financial Times report that Saudi Arabia’s wealth fund has taken a $2 billion stake in the company. This left investors speculating the after-effects if the CEO’s decision comes into play. The news was posted at lunchtime in New York which left Wall Street in a shock.
Musk Aims To Take Tesla Private At $420
The company’s shares were bumped up on the news and the trading stopped for a while. After a short while, the trading stock rested at 11 percent at $379.57. Musk also stated that with the action into play, this would also free the company from “quarterly earnings cycles”. Ultimately, the argument ran towards being a public company caused the short sellers to attack the company which turned the company into “the most shorted stock in the history of the stock market”. Musk stated that he aims to take the company private at $420.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
Elon Musk shared no further details on how the funding deal would be abolished. Moreover, details on when the buyout offer will be made are also far from the question at this point in time. Elon Musk tweeted in less than an hour after the Financial Times unveiled that Saudi Arabia’s Public Investment Fund had gathered a 3-5 percent stake this year. Crunching the numbers, this puts them among the company’s largest investors.
Before the report and Tesla’s share price rise, Saudi Arabia rested at $1.7 billion to $2.9 billion which is less than 5 percent of the total stake. Elon Musk has a 19.9 percent stake in the company’s stocks and seeing the numbers, it definitely is worrying for the CEO. Moreover, Tesla CEO’s credibility is immense enough to call it a false claim. However, it rests with time what the CEO has in mind for the company and how he aims to fulfill his decisions.
What do you think about Tesla and Musk’s tweet?