Tesla $71 Billion Buyout
Elon Musk founder CEO and product architect of Tesla, announced on Twitter that he is considering taking Tesla private at a price of $420-a-share and had secured funding from unnamed investors. This what would amount to an over $71 billion buyout ($80 billion-plus when counting debt). He further tweeted that he had already lined up the funding, and he told employees that it would relieve the Tesla $71 Billion Buyout company of the “enormous pressure” of Wall Street’s expectations.
Musk Wants to Turn Tesla Into a Private Company
Musk’s plan would of course need shareholder approval, but tweets sent by Musk on Tuesday caused Tesla stock to spike by nearly 9% and finished up 11%, at $379. According to CNN Money, an a letter to Tesla employees, posted on the company’s blog, Musk called his idea the “best path forward.” Musk further stated that “…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, all of whom are shareholders.” He also said trading its stock publicly “means that there are large numbers of people who have the incentive to attack the company.” Musk has complained repeatedly about short-sellers, who profit when Tesla stock drops.