Elon Musk tweets that he can take Tesla private

Reuters

Tesla boss Elon Musk has suggested via Twitter that he “saw” to take the electric car company private.

In his tweet, Mr. Musk has said that it would buy the outstanding shares in the company for $ 420 each, about a fifth higher than the share of the current price.

“Funding,” the tweet added, providing more details about where the funds come from or when.

The company shares rose after the tweet, but the Nasdaq subsequently suspended trading pending an announcement.

Tesla did not immediately respond to a request for comment.

Unlike publicly-traded companies, private companies do not need to share the details of their finances and operations. They are also shielded from the ups and downs of the stock market.

The end of the Twitter post by @elonmusk

If Tesla were taken private at $ 420 per share, would be one of the biggest operations in history – worth more than $80bn, including the study of the debt.

At first sight, it was not clear how seriously to take Mr Moss messages.

While Mr Musk has previously discussed the disadvantages of being a public company, has also used his Twitter account in ways that surprised investors.

On April Fool’s Day, Mr. Moss, who owns almost 20% of the company, joked on Twitter about Tesla going bankrupt.

In the follow-up tweet on Tuesday, Mr. Musk said that the private company would not lead to a single dominant shareholder, as investors can choose to maintain their holdings.

Designed to hold over his actions, and hoped to continue as chief executive, he added.


Image Copyright @elonmusk
@elonmusk


Image Copyright @elonmusk
@elonmusk

The tweet came after a separate report from the Financial Times that Saudi Arabia’s sovereign fund had taken a 3%-5% stake in Tesla, a holding company for a value of at least $1.9 billion.

The article said that the state fund, managed by a powerful crown prince Mohammed bin Salman, was interested in the purchase of new shares.

The report, combined with Mr. Musk’s tweet, and stir further speculation about Tesla, which is spending heavily as it ramps production of its latest car, the Model 3.

The company reported a record loss in its most recent quarter, and some analysts say that it will be necessary to raise money in order to survive.

However, Mr. Musk has said that he has no intention to do so and has promised that the company will be profitable in the second half of the year, barring any unforeseen circumstances.