Elon Musk tweets he is taking Tesla private at $US420

Elon Musk at a Tesla

Elon Musk has been embroiled in a war of words on social media with critics of the electric car company

Musk, who has previously discussed possibly taking Tesla private, has had bumpy relations with Wall Street, often dismissing questions over financing. In a Bloomberg report following the tweet, the publication quoted Musk as having said in 2015, "There's a lot of noise that surrounds a public company and people are constantly commenting on the share price and value.Being public definitely increases the management overhead for any given enterprise". "The stock is worth $570 a share based on 2019 revenue". Following the tweet, Tesla stock shot up to $367.25 before the stock's trading was halted at 2:08pm.

Tesla shares closed up 11 per cent at US$379.57, slightly below their all-time high.

The plan would need shareholder approval, but Musk's tweet sent Tesla stock spiking by nearly 9%.

Musk's tweet comes as Tesla faces continued pressure to ramp up output of the Model 3 sedan, its first effort at the middle market. And the fact that the company has been burning through cash, and even asking suppliers to refund payments might make such a buyout fairly unlikely.

The CEO said shareholders would have the final say if he decides to follow through on going private, and that he would stay in his job.

The billionaire Musk, who owns about 20 per cent of the company, said a transaction would not "substantially" alter his stake and that he expected to continue to lead the company if it occurred. He said in his letter to employees that he did not seek to expand his ownership.

Ontario is axing its test of universal basic income
The decision was made as part of a commitment to reform the province's social assistance system. MacLeod later admitted that the cancellation of the pilot was a broken campaign promise .

While Twitter users had questioned whether the $420 price was real - the number is a slang term for marijuana - he confirmed that it was about a 20 percent premium over Tesla's share price after its second-quarter earnings.

"My hope is all current investors remain with Tesla even if we're private", Musk tweeted.

Musk has a long history of bristling at the amount of scrutiny Tesla endures from investors and media.

Greentech Media senior analyst Allison Mond gave her view on Tesla going private, with a careful eye to its solar business. It drove $2.3 billion of convertible debt past the level at which investors can swap it for stock at a profit; if that happens Tesla will not have to pay back the debt with cash.

Such a deal, if it went ahead, would take Tesla out of the glare of Wall Street but might limit its access to capital. Fidelity, the investment firm, has such a fund for its stake in SpaceX, a separate private company also run by Musk. Finally, as the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company.

How does Saudi Arabia fit into all this?

The news, first reported by the Financial Times, sent Tesla shares up about 5 percent.

Rough governor's race highlights Tennessee primary election - 8/2/2018 12:51:36 PM
Heading into July, Blackburn maintained an early 2-to-1 cash advantage over Bredesen, with $7.3 million in her bank account. Blackburn has billed herself as a "hardcore, card-carrying Tennessee conservative" from the outset of her campaign.

Musk did not disclose the source of the funding.

When Tesla was just getting started, issuing stock wasn't an issue - it's what a company with many years of growth is supposed to do.

Tesla shares have been on the upswing since it reported on August 1 a bigger-than-expected second-quarter but signalled that it expects to reach profitability in the third quarter and remain in the black for the foreseeable future.

And Tesla also released an email to its employees in which Musk argued going private would release the company from "wild swings in our stock price that can be a major distraction for everyone working at Tesla".

Tesla shares were already trading higher today because of a report in the Financial Times of a new stake from the Saudi Arabia sovereign wealth fund.

Torreira Confirms Arsenal Move Ahead of Medical
The Gunners did offer the player to undergo a medical in Russian Federation , but the player rejected as he wanted to commit wholly on national duty.

Latest News