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Weekend Reads Tesla CEO drops latest bombshell with $72B buyout proposal

03:51  08 august  2018
03:51  08 august  2018 Source:   msn.com

Why Elon Musk wants to take Tesla private

  Why Elon Musk wants to take Tesla private Why Elon Musk wants to take Tesla privateTesla shares went on a wild ride Tuesday after CEO Elon Musk said on Twitter that he was hoping to privatize the company at $420 a share. At that price, the market value of Tesla would be about $71 billion.

SAN FRANCISCO (AP) — Tesla CEO Elon Musk is gearing up to lead a buyout of the electric car maker in a stunning move that would end the maverick company's eight-year history trading on the stock market.

Analysis: Elon Musk Drops Tesla Buyout Bombshell . At that price, the buyout would cost nearly $ 72 billion, based on Tesla 's outstanding stock as of July 27, but it's unlikely the deal would cost that much because Musk owns a roughly 20 per cent stake in the Palo Alto, California, company.

SAN FRANCISCO - Tesla CEO Elon Musk is considering leading a buyout of the electric car maker in a stunning move that would end the maverick company's eight-year history trading on the stock market.

In his typically unorthodox fashion, the eccentric Musk dropped his bombshell on his Twitter account, which he has used as a platform for pranks, vitriol and now for a proposal to pull off one of the biggest buyouts in U.S. history.

Musk got the ball rolling Tuesday after the stock market had already been open more than three hours with a tweet announcing he might buy all of Tesla's stock at $420 per share with no further details.

Tesla board plans to tell Elon Musk to recuse himself, prepares to review take-private plan

  Tesla board plans to tell Elon Musk to recuse himself, prepares to review take-private plan The board plans to meet with advisors next week about taking Tesla private, and has told Musk that he needs his own separate set of advisers.Load Error

Analysis: Elon Musk Drops Tesla Buyout Bombshell . At that price, the buyout would cost nearly $ 72 billion, based on Tesla 's outstanding stock as of July 27, but it's unlikely the deal would cost that much because Musk owns a roughly 20 per cent stake in the Palo Alto, California, company.

Tesla CEO Elon Musk is considering leading a buyout of the electric car maker in a stunning move that would end the maverick company's eight-year history trading on the stock market. In his typically unorthodox fashion, the eccentric Musk dropped his bombshell on his Twitter account, which he has

At that price, the buyout would cost nearly $72 billion, based on Tesla's outstanding stock as of July 27, but it's unlikely the deal would cost that much because Musk owns a roughly 20 per cent stake in the Palo Alto, California, company. He also said he intends to give Tesla's existing shareholders the option of retaining a stake in the company through a special fund, if they want.

"Am considering taking Tesla private at $420. Funding secured," Musk wrote in his first tweet, following up with "good morning" and a smiley emoji.

His tweet came hours after the Financial Times reported that Saudi Arabia's sovereign wealth fund had built a significant stake in Tesla Inc., but it was unclear if that was the funding Musk was referring to. The Financial Times, citing unnamed people with direct knowledge of the matter said Saudi Arabia's Public Investment Fund had built a stake of between 3 and 5 per cent of Telsa's shares.

Lawsuits accuse Tesla's Musk of fraud over tweets, going-private proposal

  Lawsuits accuse Tesla's Musk of fraud over tweets, going-private proposal Lawsuits accuse Tesla's Musk of fraud over tweets, going-private proposalThe lawsuits were filed three days after Musk stunned investors by announcing on Twitter that he might take Tesla private in a record $72 billion transaction that valued the company at $420 per share, and that "funding" had been "secured.

Elon Musk said in a tweet that he may take Tesla private at 0 a share, and already has secured funding.

Tesla CEO Elon Musk is gearing up to lead a buyout of the electric car maker in a stunning move that would end the maverick company's eight-year history trading on the In this June 14, 2018, file photo Tesla CEO and founder of the Boring Company Elon Musk speaks at a news conference in Chicago.

Musk's announcement was initially met with widespread skepticism, with many people connecting the proposed $420-per-share offer with 420 being a common slang term for marijuana.

Elon Musk wearing a suit and tie© Provided by thecanadianpress.com

Musk also previously used his Twitter account to joke that Tesla was going bankrupt in an April Fool's Day tweet and his stability was called into question last month after he called a British diver who helped rescue children from a Thailand cave a pedophile. That baseless tweet was quickly deleted and Musk apologized to the diver.

The confusion caused by Musk's Tuesday announcement via Twitter also prompted regulators of the Nasdaq stock market to temporarily suspend trading in Tesla's stock.

Musk later brought some clarity to the situation in an email to Tesla employees that was also posted on Tesla's blog. Trading in Tesla's stock resumed shortly after, and the stock climbed 11 per cent to $379.57. Musk's offer is 9 per cent higher than Tesla's peak closing price of $385 reached nearly a year ago.

Elon Musk sued over tweets, proposal to take Tesla private

  Elon Musk sued over tweets, proposal to take Tesla private Tesla Inc. and its chief executive Elon Musk were sued twice on Friday by investors who said they fraudulently engineered a scheme to squeeze short-sellers, including through Musk's proposal to take the electric car company private. The lawsuits were filed three days after Musk stunned investors by announcing on Twitter that he might take Tesla private in a record $72 billion US transaction that valued the company at $420 per share, and that "funding" had been "secured.

Analysis: Elon Musk Drops Tesla Buyout Bombshell . At that price, the buyout would cost nearly $ 72 billion, based on Tesla 's outstanding stock as of July 27, but it's unlikely the deal would cost that much because Musk owns a roughly 20 per cent stake in the Palo Alto, California, company.

NEW YORK >> Tesla CEO Elon Musk is gearing up to lead a buyout of the electric car maker in a stunning move that would end the maverick company’s eight-year history trading on the stock market. In his typically unorthodox fashion, the eccentric Musk dropped his bombshell on his Twitter account

By taking Tesla private, Musk believes that the company will be able to sharpen its long-term focus of revolutionizing an automobile industry dominated by fuel-combustion vehicles without having to cater to investors' fixation on how the business is faring from one quarter to the next.

Making money has proven elusive for Tesla while it has been investing in electric car technology and ramping up production of its vehicle, including a sedan with a starting price of $35,000 to appeal to a broader audience.

The company has only posted a quarterly profit twice in its history and has never made money during an entire calendar year, something that Musk has been trying to change by cutting costs, including recent mass layoffs that trimmed Tesla's workforce by 9 per cent. Tesla lost another $717.5 million in its most recent quarter.

Despite its challenges, Tesla has remained a favourite among many investors, partly because of their faith in Musk, who made his initial fortune as a co-founder of PayPal and also is the CEO of a trail-blazing aerospace company, SpaceX, that's already private.

Musk says Saudi fund supports Tesla buyout as talks continue

  Musk says Saudi fund supports Tesla buyout as talks continue Tesla CEO Elon Musk said Monday he is still in talks with potential backers of a possible buyout of the company, including Saudi Arabia's sovereign wealth fund, but had not completed securing the funding.Load Error

Analysis: Elon Musk Drops Tesla Buyout Bombshell . At that price, the buyout would cost nearly $ 72 billion, based on Tesla 's outstanding stock as of July 27, but it's unlikely the deal would cost that much because Musk owns a roughly 20 per cent stake in the Palo Alto, California, company.

Tesla CEO Elon Musk mulling potential $ 72 B buyout of electric car maker. In his typically unorthodox fashion, the eccentric Musk dropped his bombshell on his Twitter account, which he has used as a platform for pranks, vitriol and now for a proposal to pull off one of the biggest buyouts in

But another substantial segment of investors are convinced Tesla is doomed to fail and are betting on the company's eventual demise by becoming "short sellers" of its stock. Short sellers borrow shares from other investors and then immediately sell them on the premise that they will be able to buy them back at a lower price later to replace they stock they borrowed.

Musk has long raged against short sellers and mentioned his desire to be rid of them as one of his reasons for taking Tesla private. "Being public means that there are large numbers of people who have the incentive to attack the company," he wrote.

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Alexandra Olson reported from New York.

Tesla files lawsuit against Ont. government .
TORONTO - Electric car maker Tesla Motors Canada ULC is suing the Ontario government, claiming it has been treated unfairly in the government's decision to cancel an electric vehicle rebate.  Load Error

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