Elon Musk considers taking Tesla private as stock jumps

Elon Musk considers taking Tesla private as stock jumps

Elon Musk considers taking Tesla private as stock jumps

"Earlier today, I announced that I'm considering taking Tesla private at a price of $420/share", Musk said in a blog post on Tesla's site.

After first issuing a tweet that he was mulling the idea of taking Tesla private, Musk on Tuesday said in a letter to employees that he would prefer to run Tesla as a private company to allow it to operate away from the attention it receives due to its notoriously volatile stock price. He did not identify the would-be buyer or buyers.

Musk said that he expects Tesla to eventually return to being a public company. Shares in Tesla were up sharply following the tweet, trading at $363 at the time of writing.

Separately, Financial Times reported on Tuesday Saudi Arabia's sovereign wealth fund, overseen by Crown Prince Mohammed bin Salman, has built an undisclosed stake of between 3 and 5 percent stake in Tesla.

Musk complains that Tesla is "the most shorted stock in the history of the stock market" and many people "have the incentive to attack the company".

Analysis: will the Model 3 make or break Tesla? The stock has fallen over the past year as the company's losses have mounted.

If Tesla went private, investors could keep their stakes in Tesla through a special fund, or sell their shares at $420 Dollars.

"Given his historic frustration with short sellers, analysts and certain parts of the press, it is perhaps also not surprising that he has given consideration to taking the company private".

At $420 per share, it would be the largest deal of its kind, valuing the company at around $80 billion. The numbers from the report indicate that the PIF, which has more than $250 B in assets, has a stake of between $1.7 B and $2.9 B at Tesla's current share price.

This is really no surprise, given his other major endeavour - SpaceX - is privately owned and is likely never going to be listed publicly.

While the decision isn't set in stone, Musk layout out a provisional plan to take the company private. Netflix stock moved higher as a result. Musk said he will ensure the prosperity of shareholders "in any scenario". Chief Executive Officer Elon Musk tweeting that he's considering taking the electric-car maker private.

One of the more notable short sellers in Tesla's stock, Jim Chanos of Kynikos Associates, commented on Musk's tweet to CNBC. The tweet was apparently an April Fool's joke.

In Musk's case, it's arguable that all investors know to be watching his tweets every second of the day. Though notably, that halt was not put in place until after Musk disclosed on Twitter that he was considering turning the company private.

Scottish money manager Baillie Gifford, which recently urged Musk to focus less on tweeting and more on running the business, is the fourth-largest shareholder, with a almost 8% stake.

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