Tesla’s Big Question: Better or Worse Off as Private Company

Tesla’s Big Question: Better or Worse Off as Private Company

Cowen analyst Jeffrey Osborne told clients in a note Wednesday that he didn't believe Tesla's current business "support a valuation anywhere close to $420 per share".

Tesla CEO Elon Musk met with SoftBank CEO Masayoshi Son about taking the electric-car maker private previous year, Bloomberg reports.

"Earlier today, I announced that I'm considering taking Tesla private at a price of $420/share".

Lawyers said every word of Musk's tweets will be examined, including why he used words like "considering", to determine whether he might have tried to inflate the stock price to blow out short-selling investors, a longtime foe.

"T$3 he reason for doing this is all about creating the environment for Tesla to operate best", the email reads.

Tesla stock closed Tuesday at $379.57.

Public companies have four days to report certain material events that shareholders should know about to the U.S. Securities and Exchange Commission. That will certainly drop the price of going private, as will the fact that Musk himself owns about 20 percent of Tesla, a number he sees as staying firm after the company is no longer public.

Musk's tweets caused a flurry of activity in financial markets.

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For SpaceX , a demonstration flight with no passengers is set for November 2018, and the first manned flight set for April 2019. Since then, every nation on Earth has relied on Russian Federation to get to the International Space Station.

"Finally, this has nothing to do with accumulating control for myself".

Tesla's CEO also laid out what he envisions as the ideal path for going private.

Some on Wall Street shared that view.

China's Tencent Holdings Ltd, which took a 5-percent stake in Tesla previous year, could also be a possible partner. But going private could also complicate Tesla's effort to build a mainstream electric vehicle by removing the easy access to capital the Wall Street darling has enjoyed.

Shares of electric car-maker Tesla opened slightly lower on Wednesday, one day after a proposal to go private pushed the company's stock near an all-time high.

The whole thing isn't yet set in stone because it must be put to a shareholder vote. "Either way, the future is very bright, and we'll keep fighting to achieve our mission".

But the board offered no further details of the proposal or its funding, sparking new questions about the feasibility of the master gambit Musk revealed in a surprise series of midday tweets on Tuesday. Many initially thought it was Elon Musk's attempt at a bad joke about marijuana, because "420" has always been associated with pot. The move is estimated to require north of $50 billion to buy out the public shareholders.

It seems to have gotten the better of the billionaire who has tweeted that he's considering taking the company private. If the statement regarding having secured the funding for the move later proves unachievable, then Musk could be in hot water with regulators over the statements that he first made on Twitter.

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