Tesla whipsaws investors on doubts Musk has funds to go private

Tesla whipsaws investors on doubts Musk has funds to go private

Tesla whipsaws investors on doubts Musk has funds to go private

After telling the New York Times that his job was taking a serious emotional toll on him, he spoke to YouTube personality Marques Brownlee, suggesting that it would take "maybe" three years to produce a $25,000 vehicle. "This past year has been the most hard and painful year of my career", he told the newspaper.

Musk told The Times that he often faced a choice of insomnia or taking Ambien, a sedative used as a temporary treatment to sleep problems. In the days following Musk's fateful tweets, the opposite picture began to emerge, painting Musk as being one of a small number of people with general knowledge of such a significant move.

Mr Musk has a well-known dislike of short sellers, whom he has called "jerks who want us to die" and argued that taking Tesla off the stock exchange would shield it from their attacks.

"Going back nearly two years, the Saudi Arabian sovereign wealth fund has approached me multiple times about taking Tesla private", Musk wrote in a blog post explaining the tweets.

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The injury means he will miss most of the group stage of the Champions League, which starts in September, and two matches for Belgium in the new UEFA Nations League.

The negotiations with Lucid show Saudi Arabia's growing interest in electric vehicles as it seeks to diversify its economy away from oil. He later said that meeting with Saudi Arabia's sovereign wealth fund had given him confidence to announce the news.

The question even came up during a Tesla earnings call a year ago, when a Morgan Stanley analyst pointed out to Tesla CEO Elon Musk that Apple has more than enough cash to buy Tesla and could help it achieve its vision.

Tesla shares plummeted Friday by the most in two years, closing at $305.50, after the New York Times published an interview in which Musk described the past 12 months as "the most hard and painful year of my career". To make Tesla function as an auto manufacturer, Musk needs to bring in other operators "before he burns out or worse", wrote investment banker J. Christopher Whalen of Whalen Global Advisers. I understood from him that no other decision makers were needed and that they were eager to proceed. I just got home from the factory. "This is why I referred to "funding secured" in the August 7 announcement".

While Tesla has yet to sell its baseline $35,000 Model 3, relying on costlier models to sustain operations, Musk expressed the goal of ramping up production and lowering design and technology costs to reach a cost of $25,000. Rather than soaring toward that value, the stock has since plummeted 20% as parts of Musk's story unravel and pressure mounts on Tesla's board for its handling of the iconic CEO. The company's stock is down 2 percent this year through Friday versus the S&P 500's 7 percent gain.

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