In a pair of Teets Musk proclaimed he would take Tesla private around $420 a share. He doesn’t have controlling interest.
Share Price $420
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
Shareholders could either to sell at 420 or hold shares & go private
— Elon Musk (@elonmusk) August 7, 2018
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.
— Elon Musk (@elonmusk) August 7, 2018
Shares Rise 6.5%
In response to those Tweets, Tesla Rose 6.5% in Afternoon Trading.
Shares are up but Musk does not have a controlling interest. Where’s the funding?
Tesla’s stock was up 6.5% at $364.11 in early afternoon trading, meaning it would need to climb a further roughly 16% to reach $420. The Financial Times reported on Tuesday that Saudi Arabia’s sovereign-wealth fund has accumulated a roughly $2 billion stake in the company.
Tesla couldn’t immediately be reached for comment.
Publicity Stunt
My best guess is this is another publicity stunt hoping to squeeze the shorts. But if that is a success, who will be left to buy?
