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Elon Musk Considers Taking Tesla Private
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 Shares Resume Trading, Musk Posts Blog on Why Company Should Go Private
"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: 0) by Anonymous Coward on Friday August 10 2018, @10:42PM (1 child)
Has anybody actually verified that he actually was the author of that tweet? It may have been his account, but it's twitter. How secure could his account possibly be?
Sufficed to say that sources like Arstechnica are using the opportunity to fling poo. But since their corporate owned by a media company that is walking distance from wall street, it is fair to consider that they are more likely to be involved in SEC violations than Musk is. Probably 50% of their forum posts are probably their own bots. Either that, or bots run by some pump and dumper pals down the street. Nothing personal, but if I was looking to investigate stock manipulation, the forums that are followed by chop shop articles, would be where I would look.
(Score: 0) by Anonymous Coward on Saturday August 11 2018, @03:21PM
The BBC ups the anti with Libel. Which is a real thing in the U.K.
At: https://www.bbc.com/news/business-45155268 [bbc.com]
They say:
"Elon Musk's bombshell announcement that he is thinking of taking the electric car company Tesla private has landed him a lawsuit from unhappy investors."
Short sellers aren't "investors". They don't own the stock they sell. Funny how every time I see something like this on the BBC, the article isn't signed.