Musk later tweeted that existing stockholders could choose whether to hold onto their shares or sell them to the new investors for $420 a share. "This included discussion as to how being private could better serve Tesla's long-term interests, and also addressed the funding for this to occur". The shares surged 11 percent to $379.57 on Tuesday after Musk said he's considering taking Tesla private at $420 a share, or an enterprise value of about $82 billion.
The most obvious equity partners for Musk would be a sovereign wealth fund such as Saudi Arabia's Public Investment Fund (PIF), which sources said on Tuesday had taken a stake of just below 5 percent in Tesla, or a major technology investment fund such as SoftBank Group Corp's Vision Fund, bankers said.
As Tesla's board of directors rallied Wednesday behind chief Elon Musk's extraordinary push to take the all-electric automaker private, a growing contingent of investors, analysts and former regulators voiced their doubts that the deal would ever take off. He now owns 20 percent of the company, so more than $60 billion is needed to buy the business from public shareholders.
Elon Musk's tweets early on Tuesday caused plenty of speculation and controversy. "Finally, as the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company". Musk owns about 20 percent of the Palo Alto, California, company's stock, so that likely would reduce the cost of the buyout.
Republicans won't budge on Kavanaugh documents amid Dem accusations of hiding records
Hatch said Kavanaugh is a "choir boy" who has "not offended anybody as far as I can see". Grassley, in a July 27 letter, had asked to get records by August 15 from the George W.
Mendocino Complex Fire 30 percent contained, 41 homes destroyed
Shasta County, in Northern California, is the site of the deadly Carr Fire, which reportedly claimed a seventh victim on Saturday. The fire burned slowly for days before winds suddenly whipped it up last week and drove it furiously through brush and timber.
Chelsea's Courtois wants Madrid move for family reasons, says agent
Sarri also provided an update on Eden Hazard and Thibaut Courtois - both of whom have been linked with moves to Real Madrid this transfer window.
"I'm trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, and where there is as little change for all of our investors, including all of our employees, as possible".
Tesla's CEO also laid out what he envisions as the ideal path for going private.
Musk's proposed move is seen as a strategy to avoid several issues: Wild stock swings, short-sellers who profit on stock value drops and shareholder pressure on quarterly performance, according to the Financial Times. "This is out there, even for Tesla", analysts with Barclays wrote Wednesday. "And if you stay as a shareholder you get less information than before and you depend more and more on Elon Musk". He said funding was "secured", without elaborating.
The six board members who issued the statement on Wednesday included James Murdoch, chief executive of Twenty-First Century Fox Inc. and Brad Buss, who was the chief financial officer of solar panel maker SolarCity until it was bought by Tesla in 2016. Tesla is a legendary cash-burner, with roughly $10 billion in debts and $2 billion in reserves, and Musk would probably need in the tens of billions of dollars to buy out shareholders at the right price.