Tesla’s Big Question: Better or Worse Off as Private Company

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But after the markets opened Wednesday morning, Tesla's stock edged downward about 1 percent, to $375.

"T$3 he reason for doing this is all about creating the environment for Tesla to operate best", the email reads.

The most obvious equity partners for Musk would be a sovereign wealth fund such as Saudi Arabia's Public Investment Fund (PIF), which sources said on Tuesday had taken a stake of just below 5 percent in Tesla, or a major technology investment fund such as SoftBank Group Corp's Vision Fund, bankers said.

Musk later clarified in a blog post that "a final decision has not yet been made", while touting the benefits of running a private company away from the "enormous pressure" of Wall Street's quarterly earnings cycle. "Finally, as the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company".

Shares skyrocketed the day before, after CEO Elon Musk tweeted he was considering taking the company private and had "funding secured".

Musk later elaborated in a letter to Tesla employees saying that he was exploring the option.

The move to take the company public would remove Musk, who himself has a 20 percent stake, from the public arena - and contentious criticism.

"Finally, this has nothing to do with accumulating control for myself".


He explained that, ideally, he would restructure the company in a similar manner to his other company, SpaceX, giving employees shares of the company and allowing them to buy or sell them periodically.

"Am considering taking Tesla private at $420". But going private could also complicate Tesla's effort to build a mainstream electric auto by removing the easy access to capital the Wall Street darling has enjoyed.

USA regulators are examining how Tesla Inc (TSLA.O) Chief Executive Elon Musk announced his plan to take the electric carmaker private and whether his statement was truthful, the Wall Street Journal reported on Wednesday. But I didn't walk away from it thinking, .

The whole thing isn't yet set in stone because it must be put to a shareholder vote.

Tesla's CEO also laid out what he envisions as the ideal path for going private. "Either way, the future is very bright, and we'll keep fighting to achieve our mission".

Tesla shares fell 2.4 percent to $370.34 on Wednesday after closing up 11 percent on Tuesday. And you'd think an entity putting up that kind of money would insist that Musk announce the move in a more conventional way to avoid unnecessary legal trouble. "Funding secured", the message from Musk, sent out nonchalantly on Tuesday afternoon, stated.

The SEC is also reportedly looking into whether Elon's use of Twitter constituted sufficient disclosure.

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