Elon Musk Makes $82 Billion Gambit to Silence Tesla Critics
Seemingly out of the blue, Elon Musk proclaimed that he might pull his money-losing Tesla Inc. off the market. Taking the electric-car company private at the price he touted would amount to an $82 billion valuation, a monumental sum that left many investors wondering: Is this a joke?
It wasn't.
[...] "The reason for doing this is all about creating the environment for Tesla to operate best," Musk, 47, wrote Tuesday in an email to employees. He said wild swings in the carmaker's stock price are a "major distraction" to Tesla workers, who are all shareholders. And he said that being public "puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term."
To take Tesla private, Musk would have to pull off the largest leveraged buyout in history, surpassing Texas electric utility TXU's in 2007. And Tesla doesn't fit the typical profile of a company that can raise tens of billions of dollars of debt to fund such a deal.
[...] "The market doesn't believe him," said David Kudla, the CEO of Mainstay Capital Management, which is betting against Tesla. "His credibility has come into question over a number of things. If this were real, you'd expect the stock to go closer to $420 a share than it has." Most major buyouts also require a trip to the junk bond markets, where Tesla has fallen out of favor.
"Tesla resumed trading on the Nasdaq exchange after a nearly two-hour pause on Tuesday afternoon, shortly after the company confirmed in a blog post that CEO Elon Musk is considering taking the electric car maker private at $420 per share."
foxbusiness.com/markets/elon-musk-fires-up-tesla-blog-to-explain-idea-of-going-private
(Score: 2) by realDonaldTrump on Friday August 10 2018, @12:29AM (2 children)
April 20 is Adolf Hitlers birthday.
(Score: 1, Insightful) by Anonymous Coward on Friday August 10 2018, @01:17AM (1 child)
I suggest celebrating in privste, you are already associated too closely with the KKK.
(Score: 2) by archfeld on Friday August 10 2018, @05:40AM
I doubt the KKK would give much credit or respect to a half breed Indian like myself. Nor would I associate with an inbred wance like you come off as. I could be misinterpreting something here but I doubt it.
Da-wee-cha-sun coo-sah-oh-na-ah-nit ha-bah-ha-ca-yah-ha-sah wehit
For the NSA : Explosives, guns, assassination, conspiracy, primers, detonators, initiators, main charge, nuclear charge