In what kicked off a great storm last night, Elon Musk, the superstar CEO of electric automaker Tesla has tweeted out that he is considerin...
In what kicked off a great storm last night, Elon Musk, the superstar CEO of electric automaker Tesla has tweeted out that he is considering taking the company private as compared to the public entity that it currently is. In his tweet, Elon Musk offered to pay $420 for each share of the electric mobility company, which is incidentally trading at just under $380 a share. Immediately following the tweet, trading of the stock was suspended but not before it sore to a higher price than what it had been trading at through the day - over $21 in a single day! Elon Musk has also confirmed that he has already sorted funding for this buyout.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
Also Read: Elon Musk Planning Tesla Mini-Car That Can Squeeze In An Adult
While initially people assumed that this was a joke with the figure '420', which is a reference to a popular the drug Marijuana, which is now legal in some parts of the United States. However, that was quickly brushed aside as Elon wrote an email to all Tesla employees explaining why he wanted to make the move from a public to a private company. Incidentally, at $420 a share, and with 199.79 million shares in the market today, the overall value of Tesla would be about $71.31 Billion.
Shareholders could either to sell at 420 or hold shares & go private
— Elon Musk (@elonmusk) August 7, 2018
In his email, Elon Musk told his employees, "I fundamentally believe that we are at our best when everyone is focused on executing, when we can remain focused on our long-term mission, and when there are not perverse incentives for people to try to harm what we're all trying to achieve."
Also Read: Tesla Files Patent To Make Electric Car Batteries Safer
Investor support is confirmed. Only reason why this is not certain is that it’s contingent on a shareholder vote. https://t.co/bIH4Td5fED
— Elon Musk (@elonmusk) August 7, 2018
Elon Musk has also gone on to give the option of being a private share holder to the current share holders of the company and the same has also been extended to all his employees, all of who are also share holders in their own right. He went on to say, "Basically, I'm trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, and where there is as little change for all of our investors, including all of our employees, as possible."
Also Read: Tesla CEO Elon Musk May Visit India Next Year
Elon Musk also clarified that this move had nothing to do with him wanting to completely control the whole company. His email also stated that his current control of Tesla was valued at about 20 per cent and this would more or less remain the same once the privatisation took place. With the Tesla Model 3 making waves, which production issues finally at an end and with the new Tesla Model Y compact SUV just around the corner, there is no denying the fact that the automaker, and Elon Musk both have a great future ahead.
from NDTV CarAndBike - Latest News https://ift.tt/2OQN26r
COMMENTS