Surprisingly, Elon Musk twitted in the morning with smile emoji's and exclamation that he has considered taking tesla into private firm and that he has already secured all the companies shares which on his twitter message confirmed that all shares will be purchased at a rate of $420 per share which was much higher than the price in which the share were sold. But for Musk, that may be a small price to pay in return for greater control over Tesla's stock.
My reason for supporting a private Tesla is that, in my experience, there simply is no public market appetite for transformation and Elon has expressed a vision for Tesla that goes far beyond being the nascent mass-market alternative engine technology vehicle company that it is today.
The SEC and Tesla declined Business Insider's requests for comment. Shares rose 11 per cent on the day. And that doesn't include Tesla shareholders who hold their stock under the name of their bank or brokerage, a figure that is "substantially greater" than the one for shareholders of record, Tesla filings say. But concerns were apparent nearly immediately with some analysts pointing, among other things, to the "420" in Musk's tweet, a number more often used as slang for marijuana.
Tesla board mulls over Elon Musk's bid to take the company private
If I were Musk, I would have only one concern with going private: $85 billion is unlikely to come with no strings attached.
Just last week, he revealed he had been working 110 hours a week to deliver on short-term promises he had made to Wall Street, a load he traced to his boorish behavior toward two analysts earlier this year.
Musk's recent Twitter musings about taking Tesla private may have been an expression of his particular sense of humor.More news: Perseids to dazzle PH skies
"That's obviously an incredibly large valuation to somehow take into the private market", Dick Weil, CEO of Janus Henderson Group, said in an interview with Bloomberg Television. To get to $420 a share would drive that to roughly $70 billion, a hefty target for a buyout.
Now, several days later, CNBC reports thatthe board of directors at Tesla has scheduled a meeting with financial advisers next week to discuss the possible costs and benefits to actually following through on Musk's brash tweets. The meeting, they said "also addressed the funding for this to occur".
Saudi expects the PIF to become the largest sovereign wealth fund in the world with assets of $2 trillion by 2030, generating returns targeted at 8% to 9%. "How would a reasonable investor interpret that and was it consistent with the facts as they existed at the time?"More news: Tesla's board might not know where Elon's 'secure' funding is coming from
However you want to use it, it's certainly the phrase of the moment. The courts have upheld the right of companies to release news by tweet, but they and their managers still must live with specific guidelines.
The second was that Tesla's stock price spiked almost 40 dollars a share, from $342 to $380, which led to trading being halted on the stock.
Interestingly, the shares resumed trading 15 minutes before market close and share price soared further.More news: Chelsea Send Batshuayi, Zouma Out On Loan
"It's very clear that he doesn't like to deal with being a CEO of a public company", said Gene Munster, a former stock market analyst who is now managing partner of investment fund Loup Ventures.