Daily Trends Now
Daily Trends Now


Tesla board evaluating CEO Musk's idea to take company private

Tesla board evaluating CEO Musk's idea to take company private

The most obvious equity partners for Musk would be a sovereign wealth fund such as Saudi Arabia's Public Investment Fund (PIF), which sources said on Tuesday had taken a stake of just below 5 percent in Tesla, or a major technology investment fund such as SoftBank Group Corp's Vision Fund, bankers said.

China's Tencent Holdings Ltd (0700.HK), which took a 5 percent stake in Tesla previous year, could also be a possible partner.

Musk's plan to take Tesla private would give all shareholders the option to stay as investors in the now-private company or to sell their shares at $420 per share, which represents a premium of about 20 percent based on the stock price during the second quarter earnings call at the end of June.

Tesla Inc. (TSLA) CEO Elon Musk's surprise announcement that the electric carmaker might be taken private at a significant premium to its current market price is exciting many stock investors with the prospect of huge profits.

Elon Musk's net worth has surged since he raised the possibility of taking Tesla private.

Names excluded from the board statement were Musk; his brother, Kimbal Musk; and Steve Jurvetson, a venture capitalist and early Tesla backer who's been on leave since previous year.

A2018 Model 3 sedan sits next to a Model X on display outside a Tesla showroom in Littleton Colorado. Board members at Tesla are evaluating CEO and Chairman Elon Musk’s $70 billion proposal to take the electric car and solar panel maker private. Pictur
Tesla board evaluating Elon Musk's proposal to take company private

Going private is one way to avoid scrutiny by the public market as Musk and the company tackle those challenges.

FILE PHOTO: Elon Musk, founder, CEO and lead designer at SpaceX and co-founder of Tesla, speaks at the International Space Station Research and Development Conference in Washington, U.S., July 19, 2017.

'Basically, I'm trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, ' Musk wrote. "How could Tesla possibly fund such a large transaction?" It was pretty quick and seemed to handle well enough. However, they may balk if Tesla becomes even more leveraged and risky in the process of going private.

Any buy-out would require a shareholder vote.

On Wednesday, Tesla's board said it was evaluating the proposal. The move is estimated to require north of $50 billion to buy out the public shareholders. The stock is far below the $420 price at which Musk said shareholders would be bought out. 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.

The big question, of course, is whether Musk's tweet was accurate-particularly whether it's true that he has "funding secured".




follow

editors' picks

August 09, 2018
Baby's body pulled from water near Brooklyn Bridge
The baby boy, thought to be about 8 months old, was transported to a local hospital where he was pronounced dead. Unsure if someone else had gone in with the baby, rescue crews continued to search the water Sunday night.

August 07, 2018
No respite from Europe heatwave
Sweden and Poland have warned against swimming in the Baltic Sea due to a huge bloom of toxic algae caused by hot temperatures. The weather service IPMA predicted 42C in the capital on Sunday and a maximum of 44C in the central-east interior.

August 03, 2018
Twitter Reacts: Ohio State's Urban Meyer Under Investigation
From there he could piggy-back into an National Football League head coaching job. Richard Strauss say Ohio State facilitated the abuse by ignoring complaints.

August 02, 2018
Facebook finds 'sophisticated' efforts to disrupt United States politics
Facebook says the pages ran about 150 ads for $11,000 on Facebook and Instagram , paid for in USA and Canadian dollars. It also said it has shared the information with US law enforcement agencies, Congress, and other technology companies.

July 28, 2018
Death toll of IS attacks in Syria's Sweida rises to 215
However, Syrian state news agency SANA reported that the Syrian army led the counter-attack with support from local armed groups. In the eastern countryside of Sweida, some areas in the remote eastern countryside are under IS control.

July 28, 2018
Israel responds to fatal knife attack with new settler homes
There was no response from Abbas's government, which has cut ties with the Trump administration over its stance on Israel. Clashes broke out between young Palestinians and soldiers firing teargas during the raid.

July 27, 2018
North Korea hands over possible remains of Americans killed in Korean War
-North Korean relations following last month's historic summit between President Trump and North Korean dictator Kim Jong-un. Many officials in Washington appeared concerned that an early declaration of peace could lead to the collapse of the U.S.

July 26, 2018
Uber suspends driver after he secretly livestreamed his passengers
Uber has suspended a driver after he secretly livestreamed his passengers' journeys on video-sharing website Twitch . He asked a Post-Dispatch reporter to not use his full name in the story, to protect his privacy.

July 25, 2018
Trump offers $12bn in aid to farmers hurt by trade war
The No. 2-ranked House Democrat says he is pleased jobs will be created but stressed the financial impacts USA farmers face. The U.S. has also imposed tariffs on $34 billion in Chinese products and threatened tariffs on $500 billion more in goods.

July 24, 2018
Security Council united on denuclearizing North Korea
Although it's summer, China has recently increased the oil flow to the winter levels, the source told the South Korean outlet. North Korea has accused South Korea of kidnapping them, while South Korea says they chose to resettle on their own will.