Elon Musk considering taking Tesla private, TSLA stock trading halted

Elon Musk

Elon Musk

Tesla did not immediately confirm if Musk himself sent the tweet or if it was the result of a hack.

In his tweets, Musk said he would keep his Tesla shares no matter what happens, and noted that he now doesn't hold a controlling interest in the company.

Mr Musk has previously discussed the drawbacks of being a public company, saying shareholder demands often produce short-term thinking.

"The reason for doing this is all about creating the environment for Tesla to operate best", Musk wrote.

Musk has lashed out at critics and investors who have shorted the stock, going so far as to call one prominent critic's employer to silence him, and refusing to take a hard question from a financial analyst in the company's June shareholder meeting.

Musk said he wouldn't sell his stake if the company went private. He added that "being public means that there are large numbers of people who have the incentive to attack the company".

He implied that the funding values the company at $420 a share.

At that price, the buyout would cost almost $72 billion, based on Tesla's outstanding stock as of July 27, but it's unlikely the deal would cost that much because Musk owns a roughly 20 percent stake in the Palo Alto, California, company. SpaceX is a ideal example: it is far more operationally efficient, and that is largely due to the fact that it is privately held.

More news: £670million-rated Luka Modric sends Real Madrid message
More news: Note 9 leak may have just unveiled the whole package
More news: LeBron James To Executive Produce Showtime Docu-Series "Shut Up & Dribble"

$420 per share would be a significant premium on where Tesla is now trading, and also its performance over the first half of the year. Musk, 47, has already pledged some of his shares of Tesla's common stock to secure bank borrowings, according to a June 2018 filing. He also suggested the move could only be temporary as he stated "once Tesla enters a phase of slower, more predictable growth, it will likely make sense to return to the public markets".

The company's stock price jumped from US$342.54 ($460.76) prior to the announcement to US$379.57 ($510.60) at the day's close, a rise of nearly 11 per cent, but still significantly short of the proposed buy back price. It's worth noting here, too, that it was just last week that Tesla reported losses, before reassuring investors that the company's "goal is to be profitable and cash-flow positive for every quarter going forward".

His plan, outlined in the email to employees, would give shareholders a choice to sell their shares or maintain a stake in the private company.

"My hope is all current investors remain with Tesla even if we're private", Musk tweeted. They would continue to have separate ownership and governance structures.

Musk also denied giving donations to a political action committee dedicated to helping the Republicans maintain control of the house.

But time and again Musk and Tesla have been given more time to achieve success.

Mr. Musk did not detail where the money for a buyout would come from, tweeting that investor support was only "contingent on a shareholder vote". He responded to one user who observed that going private would save Tesla "a lot of headaches".

Recommended News

  • Two dead and dozens hurt in Italy truck explosion

    Two dead and dozens hurt in Italy truck explosion

    Giovanni Carella, the emergency coordinator for the local fire service said: "The shockwave from the blast was extremely violent". Bologna is an important agricultural, industrial, financial and transport hub, and is one of the most wealthy cities in Italy .
    Osinbajo sacks Lawal Daura DG DSS

    Osinbajo sacks Lawal Daura DG DSS

    Seiyefa, who hails from Bayelsa State, was before his new appointment the most senior director in the DSS - assistant DG. Yemi Osinbajo has terminated the appointment of the Department of State Security (DSS), Lawal Musa Daura.
    Saudi Arabian agency stops buying Canadian wheat, barley

    Saudi Arabian agency stops buying Canadian wheat, barley

    When asked about the contract, Freeland said the government "looks forward" to hearing from Riyadh about the future of the deal. The news comes just weeks before thousands of Canadians are expected to travel to Saudi Arabia to perform Hajj.
  • Gates Admits Embezzling From Manafort, Helping Hide Fraud

    Gates Admits Embezzling From Manafort, Helping Hide Fraud

    Gates said that he helped create documents to convert some income to a loan to lower Manafort's tax bill. The second week of the tax evasion and bank fraud trial of Paul Manafort kicked off Monday.
    Minecraft Movie Delayed After Director Leaves Project

    Minecraft Movie Delayed After Director Leaves Project

    The Movie is now the latest one with problems, following Warner Bros. acquisition of Detective Pikachu . McElhenney, meanwhile, is now working on an untitled sitcom pilot with collaborator Rob Rossell.
    Andy Murray sobs after 3-set win in Washington

    Andy Murray sobs after 3-set win in Washington

    But, yelling at himself or his coach rather frequently, Murray came all the way back to win and improve to 4-2 in his comeback. The frustrations included Murray leading the first-set tie-breaker 5-0 only to drop the next seven points and the set.
  • FC Barcelona defender Aleix Vidal has completed a return to Sevila

    FC Barcelona defender Aleix Vidal has completed a return to Sevila

    FC Barcelona expresses its gratitude to Aleix Vidal for his commitment and dedication and wishes him every success in the future. The 31-year-old Chilean played 124 games for Bayern. " Sevilla will pay Barcelona 8.5m euros, plus 2m in variables".
    Maria Sakkari fights back to make Silicon Valley Classic final

    Maria Sakkari fights back to make Silicon Valley Classic final

    The 23-year-old will face Romanian Mihaela Buzarnescu in the summit clash who stunned Elise Mertens of Belgium. Williams, who has won this event twice in 2000 and 2002, made a whopping 43 unforced errors.
    Iran's Hassan Rouhani hits out at United States  sanctions as 'psychological warfare'

    Iran's Hassan Rouhani hits out at United States sanctions as 'psychological warfare'

    Mr Rouhani said: "They want to launch psychological warfare against the Iranian nation". "US hypocrisy knows no bounds", he said. Secretary of State Mike Pompeo is echoing Bolton's statements. "They've got to behave like a normal country".
  • 'Buck-a-beer' to be available in Ontario beginning Aug. 27

    'Buck-a-beer' to be available in Ontario beginning Aug. 27

    It is unknown if any additional Ontario craft breweries will participate. "We're bringing back a buck-a-beer to Ontario". Barley Days Brewery , where Ford made his announcement, has said they will be releasing a specialty beer for $1.
    Ebola kills 33 in Democratic Republic of Congo

    Ebola kills 33 in Democratic Republic of Congo

    Nearly 1000 people who have had "contact" with the virus have been registered in health zones under surveillance, it said. An additional 43 suspected cases of Ebola were reported, including 13 confirmed by lab testing, according to WHO.
    New opt-out law for organ donation announced

    New opt-out law for organ donation announced

    An NHS sign is seen at St Thomas' Hospital in central London , Britain May 12, 2017. However, we know this new system alone is not a magic bullet.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.