Elon Musk is seriously considering taking Tesla private

Elon Musk is seriously considering taking Tesla private

Elon Musk is seriously considering taking Tesla private

Even as the world's 31st-richest person and Tesla's largest shareholder, Musk would be reliant on outside funding for any buyout since his fortune is highly illiquid.

No matter if he was joking or not, as soon as Musk tweeted about this, the stock spiked.

Trading for Tesla stock was re-activated fifteen minutes before the closing bell was rung, and the automaker closed the day up 12 percent, realizing a massive $6 billion+ appreciation in market capitalization.

"There's a lot of noise that surrounds a public company and people are constantly commenting on the share price and value", Musk said in 2015.

At $420 a share, that means Musk would have to buy back Tesla at the whopping price of $82 billion, in what would likely be one of the largest take-private transactions in history.

"T$3 he reason for doing this is all about creating the environment for Tesla to operate best", the email reads. The stock had been worth about $342 a share before Musk's tweet, and shares quickly jumped as high as $371. He also noted that going private would avoid stock shorting attempts to harm the company.

Musk also faced intense public criticism after he suggested in a tweet that one of the rescuers of the Thai soccer team trapped in a cave was a pedophile. Fortune has yet to ascertain the veracity of the tweet, and will update this article once Tesla responds.

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But private transportation experts say there are so many factors involved that the 1,000 lives saved figure is questionable. Attorney General Xavier Becerra announced that he would lead a 19-state lawsuit against the proposal once it was finalized.

The stock was halted at $366.94 per share.

Tesla has roughly $10 billion in outstanding debts and about $2 billion in cash reserves, but Musk has asserted in recent months that the company would have no need to raise new funds.

Despite the unfolding media "shitshow", Musk still seems to view privatization as an "enormous opportunity for us all". The company said it expects to be profitable during the second half of 2018.

"This proposal to go private would ultimately be finalized through a vote of our shareholders", Musk explained.

The electric vehicle maker reported revenue of $4 billion in the second quarter of 2018, with $2.2 billion in cash in hand. The buyout is good for a 20 percent premium over the current market price of the stock and would value the company at over $70 billion dollars at current numbers of outstanding shares. "The answer is no", Musk told investment analysts last week.

"Musk does not want to run a public company", said Gene Munster of Loup Ventures, as Tesla's ambitious mission makes it "difficult to accommodate investors' quarterly expectations". "He originally brought Tesla public in 2010, given he could no longer personally finance its growth, and has continually expressed his frustration with the company being public".

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