Economy

Tesla board mulls over Elon Musk's bid to take the company private

Tesla board mulls over Elon Musk's bid to take the company private

Ratings agency Moody's also said on Thursday that Tesla's consideration of going private based on Musk's letter to shareholders published after his tweets on Tuesday was negative for the company's credit outlook. Tesla shares rose 2.3 per cent to $360.61 in trading Friday before USA exchanges opened.

Board members will likely tell Musk to recuse himself from the talks, one source told CNBC, while they discuss taking the company private.

Tesla stock was up 2.32% in pre-market trading on Friday.

SEC enforcement attorneys in the San Francisco office were already gathering general information about Tesla's public pronouncements on manufacturing goals and sales targets, according to the people who asked not to be named because the review is private.

Tesla said on Wednesday the discussions had addressed the issue of how to fund such a deal, but gave no details. On Thursday, Aug. 9, Tesla shares have dropped back to near the level they were trading at before CEO Elon Musk tweeted Tuesday that he may take the company private.

In fact, before Musk's tweet, the Financial Times had reported that Saudi Arabia's public investment fund had quietly built up a stake of between 3 percent and 5 percent in the company.

Munster estimates Musk will need $25 billion to $30 billion to buy out all the Tesla shareholders who want to sell at $420. Tesla, which hasn't been accused of wrongdoing, declined to comment.

Argentina's Senate rejects bill to legalise abortion
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My reason for supporting a private Tesla is that, in my experience, there simply is no public market appetite for transformation and Elon has expressed a vision for Tesla that goes far beyond being the nascent mass-market alternative engine technology auto company that it is today.

Elon Musk, CEO of SpaceX and Tesla, is facing some backlash after calling a British diver involved in the Thai cave rescue a 'pedo'. Elon Musk has a few things on his side such as excessive dry powder in private equity, a sizable personal stake in Tesla, and a relatively low interest rate environment.

News of the potential buyout already has stung investors known as "short sellers" who have always been a thorn in Musk's side.

Nevertheless, this quarter cycle decision making would affect the company only for short term but not for long term purposes and according to Elson Musk, this long term decision is the reason behind every successful company.

The losses came amid news that the US Securities and Exchange Commission was "intensifying" a probe into Musk's statement, as Bloomberg reported.

Tesla has many mom-and-pop investors.

According to UK's the Guardian, this new valuation would float his company from its current stock market value of $63.8 billion to a whopping $82 billion, a near $20 billion inflation. This deal to take Tesla into a private could lead to a rave of fees for the Wall Street.


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