Elon Musk says Tesla will not go private after all

[groundloop]

Source: CBS News

Electric car and solar panel maker Tesla Inc. will remain on the public stock exchanges after CEO Elon Musk said Friday that investors have convinced him the company shouldn't go private. The eccentric and sometimes erratic CEO wrote in a late-night statement that he made the decision based on feedback from shareholders, including institutional investors, who said they have internal rules limiting how much they can sink into a private company.

Musk met with the electric car and solar panel company's board on Thursday to tell them he thought the company should stay public and the board agreed, according to the statement.

Musk posted on Twitter earlier this month that he was considering taking Tesla private. He said it would avoid the short-term pressures of reporting quarterly results. The tweet said funding had been secured for the deal, but the company later said the details still had to be worked out with Saudi Arabia's Public Investment Fund.

The tweet said Tesla would offer $420 per share, 23 percent above the August 6 closing price. If all the shares were bought, the deal would be worth $72 billion. But Musk later said he expected only one-third of stakeholders to agree to the buyout. Shares shot up 11 percent the day of the tweet, but they have since pulled back, closing Friday at $322.82



Read more: https://www.cbsnews.com/news/elon-musk-telsa-will-stay-public-announcement-today-2018-08-24/

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This reeks of stock price manipulation, and later in the article it says that the SEC is looking into that possibility.

[still_one]

1. I think it was plain emotional stupidity, and not intentional price manipulation, because nobody is

that stupid to post stupid to post such an obvious intent when the financials didn't add up.

However, he definitely needs to get zinged for it, because it definitely resulted in price manipulation.

This isn't the first time, nor will it be the last when Musk screws up with his vibrato, except this time it will cost him

[LiberalLovinLug]

2. I don't know much about business but

I think it was somewhat a naive move as well. Not intentionally to manipulate the market.
IMO perhaps he did that to shore up his private shareholders support. It was a threat, a shot across the bow to them. Wouldn't going public kind of water down their own shares? He was sending them a message to shore up his backing for the foreseeable future when he will push forward with more risky ventures, including expanding into China, producing a new compact SUV. Build more supercharger stops, work on a pickup and semi trailer truck. And more..

https://www.businessinsider.com/tesla-expansion-plans-2-years-2017-11#expand-its-supercharger-network-10

[xor]

3. I appreciate Elon Musk for a lot of the stuff he does, but he's really becoming more annoying

everyday. There is always something that just makes me think less of him. He's a bit of a man-child.