Musk Tweets about Taking Tesla Private-Trading on Shares Halted

Wikipedia Commons
Photo:Wikipedia Commons

Dateline: The Internet. 3:30 PM EST. Three hours ago Elon Musk tweeted that he was thinking about taking his company Tesla Motors private, a move that would be the largest leveraged buyout in history. More importantly, he also said he had the funding secured for this move. Trading of Tesla shares was halted at 2PM EST. Follow-up tweets from Musk’s verified Twitter account said that he would not sell his shares and that he would remain in his position as CEO.

Plan Floated to Pay $420/Share to Investors

When trading of shares of Tesla Motors (NASDAQ: TSLA)) was halted shares were trading at $367. In one of his tweets Musk said that the company would pay current shareholders a price of $20 per share, giving the company a valuation of $71.3 Billion. Musk then said that current investors that wanted to remain with the company could do when the company goes private and that a special fund would be established to help compensate them over time. This would emulate the business model currently being used by Musk’s SpaceX venture.

Photo: Wikipedia Commons

Wikimedia Commons

Musk also expressed his appreciation to long-term shareholders who have held their shares since prior to the beginning of 2017. He also mentioned that he would” ensure their prosperity in any scenario.”

Committee Rule for Private Tesla?

During his tweet thread today someone asked if he (Musk) would confirm that he would retain control of the company to which Musk replied that he doesn’t have a controlling vote in the company and he doesn’t expect a single person to either if the company goes private. Some have pointed out however that even though Musk currently has a Board of Directors (major shareholders) that he answers to, he pretty much does what he wishes and usually without consultation.

 

 

About Mike Aguilar 287 Articles
Mike's love of cars began in the early 1970's when his father started taking him to his Chevron service station. He's done pretty much everything in the automotive aftermarket from gas station island attendant, parts counter, mechanic, and new and used sales. Mike also has experience in the amateur ranks of many of racing's sanctioning bodies.

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