Elon Musk Tweets Out That He Plans To Take Tesla Private For $420 A Share, A Proposal That Tesla’s Board Has Considered EarlierElon Musk launching a Beta version of Tesla’s V7.0 for the Model S in China in 2015 (VCG/VCG via Getty Images)

American engineer and entrepreneur Elon Musk yesterday (7 August) tweeted out that he was considering taking his electric vehicle (EV) company Tesla Inc, private at $420 a share.

Musk’s tweets sent people into a tizzy for should such a buyout take place it would be the largest of its kind, taking Tesla’s value at approximately $70 billion. The Wall Street Journal reports that a Suadi Arabia-based investment firm had acquired a 5 per cent stake in the California-based EV manufacturer.

While Tesla’s social media accounts remained tight-lipped in the aftermath of the tweets, the company halted trading shares on Nasdaq for a few hours. When trading resumed a few hours later, they witnessed a 11 per cent spike, reaching $379.57.

Tesla’s shares on the Nasdaq
Tesla’s shares on the Nasdaq

However, this isn’t the first time that Tesla has considered going private.

Over the last one week, the company’s board has met several times to discuss the potential buyout. Musk has stated that negative propaganda by “shortsellers” would end by going private.

Several board members have said that he had initiated discussions on the matter over the last few days. A statement on the matter was released, signed by seven of the company’s nine independent board members.

Tags: 

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement