Musk tweets plan to take Tesla private

Musk tweets plan to take Tesla private

"In 2013, the SEC made it clear that people could use social media to disclose significant information about their companies, but they had a caveat, which is people need to know where to look", Pitt said. The possibility sent the TSLA stock up +7.39% at the time it was halted.

The company is still working its way out of what Musk called "production hell" at its home factory in Fremont, California, where a series of manufacturing challenges delayed the ramp-up of production of its new Model 3 sedan, on which the company's profitability rests.

In an interview with Bloomberg News in January 2015, he spoke of the benefits of running his closely held rocket company Space Exploration Technologies Corp. and his frustrations with having taken Tesla public in June 2010.

Musk said in subsequent tweets that he would remain chief executive under a go-private transaction and that any deal would benefit shareholders.

In the note, Musk took a more measured tone. On the other hand, many of Tesla's most passionate backers bought stock because they believe the price will eventually go to stratospheric levels.

As the matter unfolds, some are questioning whether or not the tweets are authentic.

"Elon Musk does not want to run public companies", Munster said.

Short sellers. These are the traders betting on the price of Tesla shares going down.

Tesla did not respond to a request for comment immediately.

Tesla chief executive Elon Musk is gearing up to lead a buyout of the electric vehicle maker in a stunning move that would end the maverick company's eight-year history trading on the stock market.

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In the post, Musk said that he feels a forward-looking company such as Tesla is better off being private and avoiding the short-term thinking involved with public markets.

One would imagine the Securities and Exchange Commission will be taking a look at Elon's announcement, its timing and its impact on stock price - since Tesla did not file an 8-K form.

The company had a market value of US$58 billion as of Monday's close.

Since Tesla is also the most shorted stock in history, Musk said the company's doubters have incentive to bash the company and depress the company's share price.

Gains following the tweet added to upward movement on the stock after the Financial Times reported that a Saudi Arabian sovereign wealth fund had built a stake of between three and five percent in the company.

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'.

But in the latest quarterly call last week, Musk struck a more amicable tone.

"In the future, once Tesla enters a phase of slower, more predictable growth, it will likely make sense to return to the public markets", writes Musk.

Taking Tesla private would certainly qualify. Public companies often have thousands of shareholders-ranging from huge pension plans and mutual funds to ordinary retail investors.

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