Elon Musk says taking Tesla private is 'best path forward'
Aug 08, 2018, 00:57
Unlike publicly listed companies, private firms do not have to share details of their finances and operations.
Musk detailed his proposal in a blog post on the company's website Tuesday, hours after stunning the company's followers by casually tweeting that he might take it private. The stock, then trading at about $342 per share, shot up to $367.25, before trading was halted at 2:08 p.m.
Musk pledged earlier this month to post net profits in future quarters, and he said he expects to company to avoid returning to the markets for capital and to be self-funding going forward.
Musk said he has no intention of combining the electric vehicle maker and the private space company under one umbrella.
Going private would take the electric auto maker out of the quarterly reporting cycle making it "free from as much distraction and short-term thinking as possible", Musk said in a blog post.
He tweeted minutes after it was reported that Saudi Arabia's sovereign wealth fund had taken a stake of up to 5pc in Tesla, a holding worth as much as $2.9bn (£2.2bn).
"We're working on a new Tesla mini-car that can squeeze in an adult", Musk tweeted on Sunday, replying to a user who asked him about a "Model X Radio Flyer" toy vehicle.
The confusion caused by Musk's Tuesday announcement via Twitter also prompted regulators of the Nasdaq stock market to temporarily suspend trading in Tesla's stock.
Musk's tweet was an exceedingly rare way to break potentially monumental news.
Tesla did not immediate respond to requests for comment.
His US$12b Tesla stake would presumably be rolled into the private enterprise. Musk noted that the price represented a 20% premium over the company's share price after last week's second-quarter earnings report.
For current shareholders, Musk said he would institute a provision ensuring that their stock be converted into private shares, adding he would 'ensure their prosperity in any scenario'.
Musk has previously discussed possibly going private as a means to realize long-term growth and accomplish a goal that some Tesla acolytes embrace with near-messianic passion.
Canadian exports to Saudi Arabia totaled about $1.12 billion in 2017, or 0.2 percent of the total value of Canadian exports. Raif Badawi was arrested in 2012 for running a blog that promoted free speech and women's rights in Saudi Arabia.
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As a rookie, Coleman started all 10 games in which he played, catching 33 passes for 413 yards and three touchdowns. Coleman has two years remaining on his rookie deal signed as the No. 15 overall pick of the 2016 NFL Draft.
Past year she and Harry celebrated her birthday at a private getaway in Africa shortly before they announced their engagement. Meghan and Harry are said to be keeping a low profile at their house in the Cotswolds due to increased media attention.
Heading into July, Blackburn maintained an early 2-to-1 cash advantage over Bredesen, with $7.3 million in her bank account. It's been an even longer drought in the Senate, with the last Democratic victor former Vice President Al Gore in 1990.
Martial has made it clear to Mourinho and United's board that he wants to leave Old Trafford this summer. Bayern Munich have put a €50m (£44.5m) price tag on Boateng, who is also wanted by Paris Saint-Germain.
Excerpts from Urban Meyer statement
Zach Smith said that after speaking to Gene Smith about them, he spoke to Meyer. "We got divorced because of it". He said the administrator told him to be on the next plane home because "We need to find out what is going on".