Markets

Elon Musk is seriously considering taking Tesla private

Elon Musk is seriously considering taking Tesla private

On Tuesday, Tesla CEO Elon Musk said he's considering a reversal - taking the electric auto company private.

Tesla CEO Elon Musk says he is considering taking the electric auto maker private.

"Funding secured", the tweet added, offering no further details on timing or source of funding.

Tesla stock was halted for more than an hour and a half and resumed trading up 11 percent to $380.60 as of 3:49 p.m.in NY.

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

Musk's tweet isn't a clear violation of SEC rules, but it could be if it was explicitly meant to boost Tesla's price.

Just under two hours after posting the Tweet about potentially going private, Musk took to Twitter again saying shareholders could either sell at the $420 price or hold onto the shares as the automaker goes private.

The inefficiency that Musk lamented has been on vivid display for all of 2018, as Tesla's existence has been fought over by long-term investors and short-sellers.




The US Securities and Exchange Commission (SEC) allows companies to use social media outlets like Facebook and Twitter to announce key information in compliance with its "fair disclosure" rules, as long as investors are alerted about which social media outlets will be used to disclose such information. The company is now valued at just over $60 billion, with Musk holding an nearly 20 percent stake in the company.

Tesla shares have been on the upswing since it reported on August 1 a bigger-than-expected second-quarter but signalled that it expects to reach profitability in the third quarter and remain in the black for the foreseeable future.

A spokesman for Tesla did not immediately return a request for comment. Because Tesla was "the most shorted stock in the history of the stock market", and quarterly earnings putting "enormous pressure" on the exponentially growing company, Musk suggests it might make more sense to trade stock privately for the time being.

Tesla has had more than its share of ups and downs over the past few months, due to an intense focus on production rates and sales figures for Tesla's mass-market Model 3 electric vehicle.

Market cap equals shares of stock times stock price. They would continue to have separate ownership and governance structures.

The CEO said shareholders would have the final say if he decides to follow through on going private, and that he would stay in his job.

"This has nothing to do with accumulating control for myself", Musk wrote. "I own about 20 percent of the company now, and I don't envision that being substantially different after any deal is completed".

"My hope is all current investors remain with Tesla even if we're private", Musk tweeted.


  • HGTV bought 'The Brady Bunch' house and plans to restore it

    HGTV bought 'The Brady Bunch' house and plans to restore it

    "I'm excited to share that HGTV is the winning bidder and we'll restore the home to its 1970s glory as only HGTV can", he said. Chief Executive David Zaslav announced the news Tuesday morning on an earnings call with Wall Street analysts.
    Star witness to take stand for second day in Manafort trial

    Star witness to take stand for second day in Manafort trial

    Rick Gates , star prosecution witness in the fraud trial, said the defendant, Mr Manafort, directed most of the crimes. Those admissions are likely to become a focal point for Manafort's defence team when he is cross examined on Tuesday.
    England bring in Pope and Woakes for 2nd Test

    England bring in Pope and Woakes for 2nd Test

    The only time that Pope has ventured above No 6 in first-class cricket was at No 5 for England Lions against India A last month. His exceptional performance made selection panel to select him over Dawid Malan for the second test.
  • Jordan Pickford wants Europa League with Marco Silva's Everton

    Jordan Pickford wants Europa League with Marco Silva's Everton

    The France global moved to Barcelona in 2016 where he played 46 times and won the double last season with Ernesto Valverde's side. I want to play games, win games and excite the fans with the quality of our football.
    Meerkat unaccounted for after 'unprecedented' hail storm at Cheyenne Mountain Zoo

    Meerkat unaccounted for after 'unprecedented' hail storm at Cheyenne Mountain Zoo

    The massive hailstorm damaged buildings and animals habitats at Cheyenne Mountain Zoo in Colorado Springs. Fourteen people were also injured in the storm, according to Colorado Springs ABC affiliate KRDO .

    Stan Kroenke Q&A: What does the takeover mean for Arsenal?

    The statement on the London Stock Exchange said KSE, a DE corporation owned by Kroenke, holds 41,743 Arsenal shares. The Arsenal Supports Trust are concerned that taking the club private will "neuter [fans'] voice and involvement".
  • Foreign affairs minister 'very keen' to quickly wrap up NAFTA negotiations

    Foreign affairs minister 'very keen' to quickly wrap up NAFTA negotiations

    Mexico is also insisting it will not agree to terms with the USA that it does not expect Canada to accept, these sources said. Whether Canada will finally join the other countries at the table, or stay on the outside looking in, remains unclear.
    Cleaning crew finds dead fetus on American Airlines plane

    Cleaning crew finds dead fetus on American Airlines plane

    A cleaning crew found a dead fetus in the bathroom on an American Airlines plane early Tuesday morning, according to WPIX . According to sources, Flight 1942 from Charlotte, North Carolina, arrived at Terminal B on Monday around 10:44 p.m.
    Great white shark leaps out of water to snap at researcher

    Great white shark leaps out of water to snap at researcher

    Shark week may be over, but someone forgot to tell a great white off the coast of Cape Cod. The incident happened off the coast of Wellfleet, Massachusetts, the Facebook post said.
  • Congo Ebola vaccine teams set up fridges, 43 cases suspected

    Congo Ebola vaccine teams set up fridges, 43 cases suspected

    He said so far, 26 case with haemorrhagic fever signs, including twenty deaths in the area of North Kivu have been reported. Ebola, first identified in the country in 1976, jumps to humans from animals including bats and monkeys.
    Tesla Inc: Elon Musk says he's considering taking car-maker private

    Tesla Inc: Elon Musk says he's considering taking car-maker private

    The BBC has been unable to verify the post was written by Mr Musk himself, but it has pushed the shares 6% higher. Tesla's stock spiked Tuesday after Musk made the abrupt announcement in a terse tweet.
    Johnny Depp's Biggie-Centric Film

    Johnny Depp's Biggie-Centric Film "City Of Lies" Has Been Shelved

    It was directed by Brad Furman ( The Infiltrator ) from a script by Christian Contreras , based on the book by Randall Sullivan. Brooks alleged that in April 2017, Depp "screamed and berated" him until he was removed from the scene.