Here's why Elon Musk wants Tesla to go private

08 August, 2018, 00:38 | Author: Darnell Patrick
  • Tesla stock price saudi elon tweet private

The BBC has been unable to verify the post was written by Mr Musk himself, but it has pushed the shares 6% higher.

NYU Marketing Professor Scott Galloway on Tesla CEO Elon Musk tweeting that he is considering taking the company private. "Funding secured", tweeted Musk just before 1 pm Eastern.

The SEC did not immediately respond to a request for comment on Musk's tweet.

Musk has every incentive to try to either drive up the stock price or eliminate the need for public reporting on sales and finances by taking the company private.

Musk has a long history of bristling at the amount of scrutiny Tesla endures from investors and media. Others interpreted the tweet as a joke, in specific Musk's reference to "420": a popularized reference to the consumption of cannabis by the marijuana culture.

Tesla CEO Elon Musk says he is considering taking the electric auto maker private. The stock, then trading at about $342 per share, shot up to $367.25, before trading was halted at 2:08 p.m.

Prior to the Tesla earnings call on Wednesday, Musk put out a call for game developers to come work for Tesla.


Munster predicted a one-in-three chance that Musk will actually take Tesla private.

Musk is Tesla's largest shareholder, with an approximately 20 percent stake valued at about $12 billion, according to S&P Capital IQ. If Musk can't prove the allegedly secured funding at $420 per share, he may be accused of market manipulation or market fraud. A price of $US420 per share price would represent a 22.8 per cent premium to Tesla's closing price on Monday, which gave the company a market value of about $US58 billion.

In an interview with Bloomberg News in January 2015, he spoke of the benefits of running his closely held rocket company Space Exploration Technologies Corp. and his frustrations with having taken Tesla public in June 2010.

The surprise announcements prompted former Securities and Exchange Commission Chairman Harvey Pitt to question whether Musk had broken securities laws. I think he's serious.

Short interest in Tesla on Tuesday stood at almost $US13 billion, according to S3 Partners, a financial analytics firm.

George Galliers, analyst at Evercore ISI said he believed the tweet was serious.

When the tweet-sized bombshell hit, Tesla's stock was already trading higher thanks to reports that a Saudi investment firm had amassed a 3 to 5 percent stake in Tesla.

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