Elon Musk tweets he’s ‘considering’ taking Tesla private

0
22


Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings.

Tesla CEO Elon Musk tweeted Tuesday that he’s “considering” taking the electric car company private — and that he has funding for his plan already secured.

Tesla Inc. shares rose sharply right after Musk sent the tweet shortly before 1 p.m. ET, adding more than 5 percent to the company’s value in a matter of minutes.

With the increase, Tesla shares were trading at around $362 per share, still well below the $420 level Musk said he is considering.

Tesla did not immediately respond to a request for comment.

Musk’s tweet comes days after the independent automaker announced it had burned through about $739.5 million in cash last quarter and suffered a company record $717.5 million loss.

In a conference call with analysts, he said Tesla would refrain from going back to the markets to boost its capital and instead become “essentially self-funding.” The company is counting on sales of its Model 3S, which starts at $35,000 and is Tesla’s first midsize car, to help drive up profits.

Musk remains Tesla’s largest shareholder. In June, the billionaire CEO bought about $25 million worth of stock and owned about 19.8 percent of the entire company, according to reports.

Musk is a frequent Twitter user and known for his maverick style, though his recent statements have caused some concern among investors. He recently accused a British man involved in the rescue of a youth soccer team trapped in a flooded Thai cave of pedophilia.

He also apologized last week after slamming analysts during a conference call last quarter for asking what he said were “dry” questions. “Boring, bonehead questions are not cool. Next?” Musk said at the time.

This is a breaking news story. Please check back for updates.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here