18:09 GMT +318 July 2019

LIVE:Russian FM Lavrov and Germay's Maas Deliver Speeches at Petersburg Dialogue Meeting (Video)

Elon Musk, CEO of Tesla Motors Inc., introduces the Model X car at the company's headquarters Tuesday, Sept. 29, 2015, in Fremont, California, US.

Tesla Shares Surge as Elon Musk Mulls Making Firm Private

© AP Photo / Marcio Jose Sanchez

12:30 08.08.2018Get short URL

Earlier this week, Tesla shares jumped after the Financial Times reported that Saudi Arabia’s Public Investment Fund had acquired a large stake in the firm.

Tesla CEO Elon Musk has recently tweeted he was considering leading a buyout of the electric car maker, thus making the company private – which sent Tesla shares flying by 11 percent, at $379.

READ MORE: Tesla Posts Record $717Mln Loss in Q2

Immediately after the multi-CEO tweeted that he mulled going private at $420 per share, and had secured funding, Tesla’s stock soared by more than 7% percent.

Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) 7 августа 2018 г.

Shortly afterwards, he published a blogpost, entitled “Taking Tesla private” that appeared to be an email sent out to the company’s staffers earlier in the day.

“Either they can stay investors in a private Tesla or they can be bought out at $420 per share, which is a 20% premium over the stock price following our Q2 earnings call (which had already increased by 16%). My hope is for all shareholders to remain, but if they prefer to be bought out, then this would enable that to happen at a nice premium,” he penned.

Elon Musk, CEO of Tesla Motors and SpaceX (File)

© AP Photo / Ringo H.W. Chiu

Elon Musk Publicly Considers Taking Tesla Private, Promises to Protect Investors

In the letter to Tesla employees, Musk rejected that he was seeking greater control or wealth of the firm than the 20 percent he already owns. At $420 a share, Tesla would be valued at just over $70 billion, well above its stock market value, which reached $63.8 billion on Tuesday.

His announcement on Twitter came shortly after the Financial Times reported that Saudi Arabia’s Public Investment Fund had purchased a 3 percent to 5 percent stake in Tesla worth up to $2.9 billion.

Tesla’s shares appear to be sensitive to the CEO’s actions; they recently fell over 3.5 percent after Musk called a diver involved in rescue operation of children trapped in Thai caves a “pedo.”

READ MORE: Tesla Shares Surge After Elon Musk Apologizes For Company’s Losses

In 2010, Tesla became the first US carmaker to go public since Ford in 1956.

Related:: Elon Musk Publicly Considers Taking Tesla Private, Promises to Protect Investors

: Tesla Shares Surge After Elon Musk Apologizes For Company’s Losses

Tags:

company, carmakers, car, shareholders, stock markets, shares, private, Tesla, Elon Musk, United States, Saudi Arabia

Community standardsDiscussion

Comment via FacebookComment via Sputnik

Сomment
Thank you! Your comment will be reviewed by the moderator for compliance with the Rules
Add more
Post limit reached. Please try again in a minute.
Your comment contains a link, so it can't be published on our site

Сomment

Community standards

The fact of registration and authorization of users on Sputnik websites via users’ account or accounts on social networks indicates acceptance of these rules.

Users are obliged abide by national and international laws. Users are obliged to speak respectfully to the other participants in the discussion, readers and individuals referenced in the posts.

The websites’ administration has the right to delete comments made in languages other than the language of the majority of the websites’ content.

In all language versions of the sputniknews.com websites any comments posted can be edited.

A user comment will be deleted if it:

does not correspond with the subject of the post;
promotes hatred and discrimination on racial, ethnic, sexual, religious or social basis or violates the rights of minorities;
violates the rights of minors, causing them harm in any form, including moral damage;
contains ideas of extremist nature or calls for other illegal activities;
contains insults, threats to other users, individuals or specific organizations, denigrates dignity or undermines business reputations;
contains insults or messages expressing disrespect to Sputnik;
violates privacy, distributes personal data of third parties without their consent or violates privacy of correspondence;
describes or references scenes of violence, cruelty to animals;
contains information about methods of suicide, incites to commit suicide;
pursues commercial objectives, contains improper advertising, unlawful political advertisement or links to other online resources containing such information;
promotes products or services of third parties without proper authorization;
contains offensive language or profanity and its derivatives, as well as hints of the use of lexical items falling within this definition;
contains spam, advertises spamming, mass mailing services and promotes get-rich-quick schemes;
promotes the use of narcotic / psychotropic substances, provides information on their production and use;
contains links to viruses and malicious software;
is part of an organized action involving large volumes of comments with identical or similar content ("flash mob");
“floods” the discussion thread with a large number of incoherent or irrelevant messages;
violates etiquette, exhibiting any form of aggressive, humiliating or abusive behavior ("trolling");
doesn’t follow standard rules of the English language, for example, is typed fully or mostly in capital letters or isn’t broken down into sentences.

The administration has the right to block a user’s access to the page or delete a user’s account without notice if the user is in violation of these rules or if behavior indicating said violation is detected.

Users can initiate the recovery of their account / unlock access by contacting the moderators at moderator@sputniknews.com

The letter must contain:

Subject - the restoration of account / unlock access
User ID
An explanation of the actions which were in violation of the rules above and resulted in the lock.

If the moderators deem it possible to restore the account / unlock access, it will be done.

In the case of repeated violations of the rules above resulting in a second block of a user’s account, access cannot be restored.

To contact the team of moderators, write to moderator@sputniknews.com