Economy

Musk's Private SpaceX Market Hints at Path to Tesla Buyout

Musk's Private SpaceX Market Hints at Path to Tesla Buyout

"As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders, Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term". He and Antonio Gracias, Tesla's lead independent director, bowed out of the process of the company acquiring SolarCity Corporation in 2016. If Musk has lined up $85 billion of private capital that is intelligent, patient and committed to Musk's vision of a high-tech clean energy economy with Tesla as its most prominent and powerful corporate citizen, then I think he should do it, and do it now.

And from the prospective private investor perspective, I wonder how they'll evaluate their part of the $85 billion investment.

Some analysts have suggested that Musk could convince Tesla's top shareholders, such as Fidelity Investments and China's Tencent, to roll their equity stakes into the deal, thereby significantly reducing the amount of money needed to be raised.

It now has a market value of $61 billion, and at a share price of $420, the company would be worth around $71.6 billion.

On Twitter, Musk stated that he is considering to take Tesla private for $420/share, at a secured funding.

According to UK's the Guardian, this new valuation would float his company from its current stock market value of $63.8 billion to a whopping $82 billion, a near $20 billion inflation.

Like Dell, Musk has a big stake in the company he runs. States also have provisions that permit existing investors in a private company to continue buying its shares, even if they don't meet the income or net worth thresholds, Weingold said.

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If and when he gets there - wherever "there" might be - there will be no defined industry segment for institutional investors to group Tesla with. For the record, Tesla has not been accused of any wrongdoing.

Tesla CEO Elon Musk is seeking relief from the pressures of running a publicly held company with a $72 billion buyout of the electric auto maker, but he may be acquiring new headaches with his peculiar handling of the proposed deal.

Bloomberg said a potential deal between Aramco and SABIC could enable the PIF to raise billions of dollars it had hoped to collect from Aramco's stalled IPO.

"They can set the price and where the shares are going", said Justin Byers, chief data officer for the Prime Unicorn Index, which tracks the performance of 102 private USA companies valued at $500 million or more. I just can't interpret it.

"A failed attempt at a deal would create new challenges for Tesla as a stand-alone public company", wrote Jonas, who rates the stock the equivalent of hold.

Public companies have four days to report certain material events that shareholders should know about to the US Securities and Exchange Commission. He thinks the stock could rally sharply above $420 and has a price target on the stock of $571. Tesla could seek SEC approval to make a tender offer exclusively to its small shareholders while retaining larger institutional owners, John Coffee, a professor of law at Columbia University, said in an interview.