Elon Musk 'considering' taking Tesla private, tweet says

Adjust Comment Print

Musk's tweet came two weeks after Tesla revealed it had burned through $739.5 million in cash on its way to a record $717.5 million net loss in the second quarter, as it cranked out more electric cars.

Elon Musk sent shares of Tesla into a frenzy on Tuesday, when the billionaire inventor wrote in an unconfirmed tweet that he's considering taking the auto company private, and has already secured the funding - language he should be sure to follow through on, according to Scott Galloway.

It was not clear if Musk was serious, as he has a history of erratic tweets, and the company did not immediately respond to request for comment.

Tesla now has a market value around $60 billion, which would make its take-private price tag about $80 billion, Galloway said. Musk owns almost 20pc of the company.

Unlike publicly listed companies, private firms do not have to share details of their finances and operations.

At a share price of $420, Tesla would be worth more than $70 billion.

Going private is one way to avoid the intense scrutiny of public markets.

"My hope is all current investors remain with Tesla even if we're private", Musk tweeted.

"I believe Tesla considers Tweets as public disclosure". "Would create special objective fund enabling anyone to stay with Tesla". The stock had been up earlier in the day after The Financial Times reported a Saudi Arabian sovereign wealth fund had bought a $2 billion stake in Tesla.

Comments