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UPDATE: Musk Tweets: Considering Taking Tesla Private At $420 Per Share
52 M BY ERIC LOVEDAY 14
And the whole world is in awe
***UPDATE – 2:10 PM Eastern – Trading of TSLA stock has now been halted
Tesla CEO Elon Musk sent shockwaves through the financial and automotive worlds today, announcing on Twitter that he is considering taking the California automaker private at $420 a share (is that just a number, or is it connected to something of a “higher” order). The company first went public in June of 2010, offering 13.3 million shares for $17 per share. My, how times have changed.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
He says he’s only considering, but it’s fair to say that he is likely “strongly considering,” especially as he’s saying the funding has already been secured. With 169.79 million shares outstanding, $420 per share would put the company’s value at $71.31 billion. Not, obviously, a small number.
As one might expect, Tesla stock reacted swiftly and strongly, leaping over 5 percent almost immediately. It continues to climb and is at $363.18 (up $21.19) as of this writing. We can only imagine this is a bad time to be short on the stock — “short” meaning you’ve made a bet that the stock price would go down.
More Musk Tweets
With the world frantically trying to figure out what the move could mean for the company, or for them, Musk followed that Tweet up with a jolly “good morning,” likely tied to the stock rise:
Good morning 😀
— Elon Musk (@elonmusk) August 7, 2018
A new Tweet possibly confirming the authenticity of the first Musk Tweets has just surfaced:
Tesla has confirmed to me these are real tweets from Elon and more information may be released soon. Stay tuned this is a real story. $TSLA
— Ross Gerber (@GerberKawasaki) August 7, 2018
Musk has now just tweeted again some clarification of how this could go down.
Shareholders could either to sell at 420 or hold shares & go private
— Elon Musk (@elonmusk) August 7, 2018
Developing story…
Categories: Tesla
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14 Comments on "UPDATE: Musk Tweets: Considering Taking Tesla Private At $420 Per Share"
He Musk WIN!
St. Elon goes to Wall Street PE Heaven!
Game, Set, Match!
and probably to hell for shorters…
And long call holders above 420$… not cool…
The $4:20 reference is opportune, and Kinda Kushy and Kool!
Smoking some Shorts? AKA “Blunts”!
And trading was halted. No surprise there.
Halted Trading, by far the Bluntest, of Wall Streets trading instruments, to Short the Shorts, who failed to exit their position!
Well… I wonder what benefits this would have? One possible benefit would be the elimination of the short sellers. Since often short sellers are responsible for some of the fake news or negative stories against Tesla, they’d have little incentive to continue if they couldn’t buy the stock in the first place.
Another benefit would be eliminating quarterly reports and keeping the internal data private.
And control the narrative without having to publish quarterly reports for all to see.
We all know how much Tesla loves to control the narrative about itself.
I hope this doesn’t go through, as I wanted to be a part of this story for many years to come. And if it does, I hope Elon finds a way to involve us (small retail investors) so we can keep our tiny stakes in his company, would be nice after many of us took quite some risk doing so…
Phew, Elon just confirmed that all current investors would be able to stay…
He’s reminding the short sellers he’s in control and could crush them anytime he wants too. He has billionaire friends that could and would jump in if asked. Remember Einhorn has 40 companies in his portfolio that he has shorted and all but one he lost money on. Hahaha
Ah, so this is how the cash crunch will be solved. There’s one born every minute…
I don’t blame him. The analysts and short sellers are a constant pain in the ass. It’s going to be so good to show the haters the door.
Also seems nice that he will allow current long investors to retain a stake in the private company.