On Tuesday, Elon Musk stunned investors when he published a tweet that said he would push to make Tesla a private company in a deal that would be worth billions of dollars.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
The announcement sent the company’s stock soaring on hopes that it would become one of the largest deals in American history. Such a deal would require a huge amount of cash to eject Tesla from public shareholders’ hands.
In his usual style, Musk decided to announce the plan on Twitter in the middle of a trading day, hours before Tesla officially announced the plan. In a statement, former Securities and Exchange Commission official Teresa Goody said:
“What chaos. It is not reasonable to expect investors to monitor and keep track of Elon Musk’s tweets.”
Musk said that he has secured the funding to take the company private at $420 per share, which would value the company at over $70 billion. In an email to employees, Musk added that the final decision has not been made yet and it would need approval from shareholders.
The company’s stock increased 7 percent before trading closed on Tuesday afternoon, however, after trading resumed the stock climbed more than 11 percent.
[via Business Insider]