Tesla Inc: Elon Musk says he's considering taking car-maker private

Tesla Inc: Elon Musk says he's considering taking car-maker private

That came after Musk voiced similar thoughts on Twitter merely an hour earlier, writing: "Am considering taking Tesla private at $420". If shareholders approved the deal, it would remove Tesla from Wall Street scrutiny, eliminating the need to publicly disclose its earnings and - for Musk - the requirement to explain himself to shareholders.

In its second quarter results for 2018 the company posted $4bn of revenue and a loss of $717m.

When another person tweeted that going private "saves a lot of headaches", Mr Musk replied, "Yes".

"If the process ends the way I expect it will, a private Tesla would ultimately be an enormous opportunity for all of us", Musk said.

But time and again Musk and Tesla have been given more time to achieve success.

The SEC declined comment on Musk's tweet.

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Musk has a history of making bold statements on Twitter and walking back from the precipice after more careful consideration, but the more detailed email to employees seems to add credence to his plan to go private. In the past year alone, Tesla shares have seen a wild swing, trading as low as $244.59 last April to reaching its all-time high less than six months later amid upbeat Model 3 sentiment.

Trading of Tesla sharesresumed after the company published the statement and the stock closed at $379.57, up almost 11 percent for the day.

Elon Musk has "surprised" the market by laying out a tentative plan to privatise the now publicly listed Tesla electric car/solar energy company with a $420 per share price offer.

The CEO wrote in a letter to employees Tuesday, revealing that he is genuinely considering moving Tesla off the public stock markets.

Because 420 is the universal number indicating it's time to smoke some weed, it was easy to laugh off Musk's tweet as just one of his weird jokes.

"Being public means that there are large numbers of people who have the incentive to attack the company", he wrote.

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Musk's tweet came nearly simultaneously with a new report from the Financial Times that revealed for the first time that Saudi Arabia's Public Investment Fund has been quietly buying up about five per cent of the electric auto company over the last few months to the tune of $US2 billion ($2.7 billion).

While it is unlikely the SEC will take action on Tuesday's tweet, there are a group of investors who are likely to sue. With approximately 170 million outstanding shares, Musk's proposed privatization of the company at $420 per share would require $71.4 billion, about a 17 percent increase.

"His mission for Tesla (to accelerate the globe's adoption of sustainable energy) is both grand and long-term, making it hard to accommodate investors quarterly expectations", he wrote.

In his blog post, Musk said he wants to give shareholders an option.

Earlier today, I announced that I'm considering taking Tesla private at a price of $420/share.

Shares have rallied strongly since those earnings, but Musk has continued to show a short fuse towards critics, lambasting "short" sellers of Tesla shares - those who take bets that the stock will fall in value.

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