Elon Musk is considering taking Tesla private for $420 USD per share

Tesla CEO Elon Musk has taken to Twitter again and this time he’s claiming that he’s secured funding to turn Tesla into a privately held company.

The tweet implies that the company is valued privately at $420 USD (roughly $548.83 CAD) per share, which is a bit more than its current share price of $366.94 USD (roughly $479.50 CAD).

Am considering taking Tesla private at $420. Funding secured.

— Elon Musk (@elonmusk) August 7, 2018

Numerous Twitter users have been accusing Musk of using this tweet to manipulate the company’s stock and as of 2pm ET Tesla’s trading has been halted at approximately $367 USD (roughly $479.50 CAD).

Shareholders could either to sell at 420 or hold shares & go private

— Elon Musk (@elonmusk) August 7, 2018

It’s unclear why or if, Musk is taking the privatization option, but CNN Money reports that Saudi Arabia has been building up a large stake in the company, suggesting that there may be actual buyers lined up.

Following his initial tweet, Musk tweeted again saying, “My hope is *all* current investors remain with Tesla even if we’re private. Would create special purpose fund enabling anyone to stay with Tesla. Already do this with Fidelity’s SpaceX investment.”

Since Musk’s first tweet went live the company’s stock rose from $358 USD (roughly $467.84 CAD) to a peak of $370.79 USD (roughly $484.55 CAD) and currently it’s sitting at $366.94 (roughly $479.52 CAD).

There has also been a lot of blowback about Musk’s tweet among Twitter users. Some are even responding to Musk unsure if he’s joking or not.

Am sure you are not aware of this. Or heck, you are trolling everyone, coz you just read this!
Section 420 of Indian Penal Code deals with cheating!https://t.co/fDCwKCSsIH

— Subrahmanyam KVJ (@SuB8u) August 7, 2018

Others have suggested that Musk’s tweets are a form of stock manipulation since Tesla’s stock price increased following Musk’s initial tweet.

Not that is some serious stock manipulation! Looking forward to joining the class action lawsuit.

— Graham B (@couchcuba) August 7, 2018

Since the first tweet went live, Musk has tweeted about the privatization six more times.

He’s cleared up some of the confusion by stating that current shareholders will have the option to sell their stock at $420 per share or keep their stock and go private.

Musk further clarified that he will remain CEO if the company goes private.

Developing …

Source: Twitter

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