Categories LATEST

Elon Musk taking Tesla private? Trading halted

“Am considering taking Tesla private at $420. Funding secured,” read a tweet posted from Tesla (TSLA) CEO Elon Musk’s verified profile at 12:50PM ET today. Within an hour, the tweet garnered about 4800 retweets and sent the stock up 6%. At around 2PM ET, trading of Tesla shares was halted, pending an announcement.

Meanwhile, CNBC reported that none of the Wall Street banks were aware of such a transaction. Also, there has not yet been an official confirmation from the company spokespersons.

In a blog post later, Musk clarified that the company has not come to a final decision.

Tesla, which went public in 2010, was trading at $363.64 at 1:30PM ET on Tuesday, with a market cap of $61.6 billion. If Tesla does indeed become private when the stock hits $420, then the company’s valuation would be around $71 billion.

Responding to another tweet in the same thread, Musk confirmed the move stating, “My hope is *all* current investors remain with Tesla even if we’re private. Would create special purpose fund enabling anyone to stay with Tesla. Already do this with Fidelity’s SpaceX investment.”

Going private makes sense for Tesla, which is closely scrutinized by the Wall Street for not returning any profits as well as the rapid cash burn it has been undergoing. Once private, the company would not have to reveal key figures to the public.

Tesla shares had early on Tuesday received a fillip after Financial Times reported that Saudi Arabia’s Public Investment Fund has acquired 3-5% stake in the company.

Related: Tesla second-quarter earnings 

Tesla second quarter 2018 earnings

Most Popular

Aurora Cannabis (ACB) Earnings: 3Q21 Key Numbers

Aurora Cannabis Inc. (NYSE: ACB) reported third quarter 2021 earnings results today. Total revenues fell 25% year-over-year to CAD55.1 million. Adjusted EBITDA loss amounted to CAD24 million. Cash balance as

Walt Disney (DIS) Q2 revenue down 13%; earnings beat estimates

Media behemoth The Walt Disney Company (NYSE: DIS) reported second-quarter revenues that declined from last year as customers stayed away from theatres and parks due to pandemic-related safety issues and

Three key factors that bode well for Tattooed Chef (TTCF) going forward

Shares of Tattooed Chef Inc. (NASDAQ: TTCF) have gained 57% over the past 12 months but has dropped 25% since the start of this year. The sentiment on the stock

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top