Elon Musk tweets about going private and shares 'skyrocket'

Elon Musk says he's considering taking Tesla private | TheHill

Elon Musk tweets about going private and shares 'skyrocket'

The announcement, made initially via Twitter, stunned investors and sent Tesla's stock price soaring as much as 13 percent. In a May earnings call, Tesla shares slipped after Musk derided "boring, bonehead" questions from analysts regarding the company's finances.

And yet it also left many questions unanswered, namely how Musk - who owns nearly 20 percent of the company - would be able to come up with the $66 billion necessary to complete the transaction. He later tweeted that the only uncertainty about completing the deal is whether he can gain shareholder approval.

In recent months, Musk has been unpredictable and defiant in the face of concerns that Tesla is running out of cash and overextending itself as it races to hit production goals for the Model 3.

When another person tweeted that going private "saves a lot of headaches", Mr Musk replied, "Yes".

Musk, without providing any justification or explanation, referred to Unsworth as "pedo guy" in a since-deleted tweet on Sunday.

The SEC has a social media policy, but it appears he would still need to properly file notices.

"It's very unusual for any CEO other than Elon Musk. This is not how you do it and it makes you wonder how seriously to take it", said Erik Gordon, a business and law professor at the University of MI.

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Tesla said in a regulatory filing in 2013 that investors interested in keeping up with Tesla should follow Musk's account. Trading in Tesla's stock resumed shortly after the letter's release, and the stock climbed 11 percent to close at $379.57. Public companies are companies whose shares are available for purchase by anyone on public markets like the New York Stock Exchange and the NASDAQ. "The use of the specific price for a potential going private transaction is highly unprecedented". Musk owns almost 20 percent of the company.

We reached out to Tesla to find out what this all means and will update when we hear more.

But it was not clear how seriously to take the post, given Mr Musk's history on the social media service.

Technology dynamo Elon Musk announced Tuesday that he may take Tesla private, sending the Internet into a spiral of speculation about whether he was actually legit. As a result, its stock is not subject to big swings in value, and the company is not required to provide quarterly financial results to the public. Musk has vowed that the company will start turning a regular profit in the second half of this year.

Wall Street jumped on the news, spiking Tesla stock from around $342 a share to a high slightly north of $370 in just 45 minutes. And then there are the short sellers. But he says any deal would be structured so that shareholders could opt to remain investors or be bought out at $420 per share.

Musk also faced intense public criticism after he suggested in a tweet that one of the rescuers of the Thai soccer team trapped in a cave was a pedophile.

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