Elon Musk tweets he may take Tesla private

Elon Musk tweet 'Am considering taking Tesla private at $420. Funding secured'

Musk is Tesla's largest shareholder, with an approximately 20 percent stake valued at about $12 billion, according to S&P Capital IQ.

At US$420 per share, a deal would be worth US$72 billion (S$98 billion) overall.

In his typically unorthodox fashion, the eccentric Mr 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 United States history.

Tesla boss Elon Musk has suggested via Twitter that he is "considering" taking the electric vehicle firm private.

Musk, who has depicted the quest to build up no-emissions electric cars as an environmental mission, said he viewed going public as "the best path forward", but that a final decision had not been made and ultimately rested on shareholder support.

"As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla", Musk wrote.

Trading in Tesla shares was halted on Tuesday, after a tweet by chief executive Elon Musk sent shares soaring by more than 7%.

Dusaniwsky said the cumulative mark-to-market paper loss for Tesla short sellers is about $3 billion this year and 35 million shares are held short. "His credibility has come into question over a number of things".

The stock was halted at $366.94 per share.

Margot Robbie reveals Sharon Tate costume from Quentin Tarantino's upcoming Manson movie
The image posted on Instagram shows Robbie, 28, leaning against a door in a black top, white mini-skirt and boots. It's classless how everyone is rushing to release something for the 50th anniversary of this horrific event'.

Hamas Considers Cease-Fire as More Arson Balloons Land in Israel
On Friday Ezzat al-Rishaq, a member of the Hamas political office, told protesters along the border they were "committed to calm". Earlier this week the Israeli navy intercepted a Norwegian-flagged activist boat, one of four that left Scandinavia in mid-May.

Cleveland Browns trade WR Corey Coleman to Buffalo Bills
Returning starter Zay Jones is coming off right knee and shoulder surgery and was cleared for practice for the first time Sunday. He played just 19 games because of injuries and eventually symbolized the overall dysfunction of Cleveland's previous regime.

Tesla Motors started selling its stock to the public in 2010 - the first initial public offering of a US automaker in more than a half-century.

How does Saudi Arabia fit into all this?

The SEC declined to comment on Tesla, but the regulator has previously declined to sanction Netflix CEO Reed Hastings in 2013 for revealing important company information on Facebook.

Officially, the SEC is fine with financial announcements on social media as long as investors are alerted to which platform they should be keeping an eye on and that no investors are given an advantage to receive the information first.

Elon now owns about 20 percent of Tesla and so he would need something like $50 billion in additional capital to fully privatize the company, along with a shareholder vote of "yes" to the move. Shares could be bought or sold periodically on a private marketplace, Musk said. "Being public definitely increases the management overhead for any given enterprise".

Munster notes that Musk's other companies, SpaceX and The Boring Company, are private firms. "His missions are big and make it hard to accommodate investors quarterly expectations".

Tesla doesn't meet the typical profile of a company that can raise tens of billions of dollars of debt.

Musk and his luxury automaker have been under vast pressure to overcome repeated delays and deliver on promises of producing 5,000 of Tesla's more affordable Model 3 cars per week. "The use of the specific price for a potential going private transaction is highly unprecedented".

Joel Levington, an analyst at Bloomberg Intelligence notes, "Funding $50 billion plus for a negative free cash flow business would be hard, if not extraordinary".

Related news:

Hot News

isis-killer-beheading-video-story-top Saudi Arabia’s diplomatic dispute with Canada
Aug 07, 2018 - 20:54
Last week, Canada's Ministry of Foreign Affairs expressed concerns over the arrests of seven Saudi civil society activists. Saudia issued a tweet early Tuesday saying flights to and from Canada would be suspended starting August 13.

isis-killer-beheading-video-story-top Indonesian communications satellite deployed in orbit by SpaceX
Aug 07, 2018 - 20:27
The Merah Putih satellite launched Tuesday will provide C-band telecommunications services over Indonesia and India. Launch commentator Lauren Lyons said the booster would be prepared for its third launch later this year.

isis-killer-beheading-video-story-top Salon workers recorded hitting customer with broom after botched wax
Aug 07, 2018 - 19:44
The shop was closed for the day and Johnson encouraged viewers of the video to continue protesting and boycotting the business. In another video from the protests, a man waves a Pan-African flag over the police barricades. "They take our money and run".

isis-killer-beheading-video-story-top Fresh round of money laundering charges for Najib Razak
Aug 07, 2018 - 18:39
His current whereabouts are unknown but Malaysian authorities have said they want to bring him back to the country and prosecute him.

isis-killer-beheading-video-story-top Pepsicos Indra Nooyi stepping down as CEO
Aug 07, 2018 - 18:39
He became president of PepsiCo a year ago , overseeing its global operations, strategy, public policy and government affairs. Nooyi's most significant legacy, leading the company's transformation mainly in snacks, has been visible across markets.

isis-killer-beheading-video-story-top 'Shut Up and Dribble' Showtime Docuseries Coming With LeBron
Aug 07, 2018 - 18:30
LeBron James is an executive producer of " Shut Up and Dribble ", a three-part documentary set to debut on Showtime in October. James said he believes sports should be used to unify. "I'd sit across from Barack [Obama], though".

isis-killer-beheading-video-story-top Facebook asks USA banks for financial info to boost user engagement
Aug 07, 2018 - 15:58
Still, Facebook has been building up user comfort with sharing financial information through its site for years. The British firm reportedly accessed data of 87 million Facebook users without their consent.

isis-killer-beheading-video-story-top Meyer says he followed protocol for 2015 abuse allegations (copy)
Aug 07, 2018 - 13:44
The university said it also notified Franklin County Children Services, university police and USA Diving at the time. The report alleges Meyer knew of the assault allegations against former wide receivers coach Zach Smith .

isis-killer-beheading-video-story-top President Trump appears to change his story about meeting
Aug 07, 2018 - 12:42
In June 2016, Donald Trump Jr., Jared Kushner and campaign chairman Paul Manafort met with Russian lawyer Natalia Veselnitskaya. Fox News national security strategist Sebastian Gorka reacts to media frenzy over Trump Tower meeting on 'Hannity'.

isis-killer-beheading-video-story-top Mendocino Complex Fire now 4th largest wildfire in California history
Aug 07, 2018 - 10:11
Keith Gilless is a UC Berkeley professor of forest economics and chairman of the California Board of Forestry and Fire Protection. Firefighters are unlikely to see some respite. "We're going back into the high 90s". "Everything is still dry".

Petition calls for Ohio State to 'save' Urban Meyer amid investigation
Aug 07, 2018 - 07:16
Smith was sacked on July 23 after reports emerged of multiple domestic abuse allegations involving Smith and his ex-wife Courtney. Meyer added that there were "more questions to be answered" and he pledged to "cooperate fully" with investigators hired by OSU.

isis-killer-beheading-video-story-top 'Heart-wrenching': Teenager robs nine-year-old's lemonade stand with BB pistol
Aug 07, 2018 - 06:32
The boy reopened his lemonade stand in a new location at the community pool on Sunday, neighbors said. "It's heart-wrenching. Fox 46 reports that the Union County Sheriff's Office (UCSO) responded to a robbery call around 3 pm.

isis-killer-beheading-video-story-top Google officially names Android 9 as Android Pie
Aug 07, 2018 - 04:54
Once you've accepted your invitation, Digital Wellbeing will appear in your phone's Settings app. If you own any of these devices then you can head to Settings and download the OTA updates.

isis-killer-beheading-video-story-top Rick Gates Testifies That He Committed Crimes With Paul Manafort
Aug 07, 2018 - 04:53
That's what the former Trump campaign chairman's "right-hand man", Rick Gates , told jurors in Manafort's financial fraud trial. In that time, we're also likely to see several emails and other documents with Gates' and Manafort's names on them as evidence.

isis-killer-beheading-video-story-top Nursing home escapees found at heavy metal festival
Aug 06, 2018 - 18:27
According to a yarn from Germany's NDR , a nursing home in Dithmarschen had noticed two residents were missing. A pair of elderly German men escaped from their nursing home to go to a heavy metal festival, it was reported.