Elon Musk 'considering' taking Tesla private, trading resumed
At his target of $420 per share, that move would be worth some $70 billion.
Andrew KrokReviews Editor / Cars
Cars are Andrew's jam, as is strawberry. After spending years as a regular ol' car fanatic, he started working his way through the echelons of the automotive industry, starting out as social-media director of a small European-focused garage outside of Chicago. From there, he moved to the editorial side, penning several written features in Total 911 Magazine before becoming a full-time auto writer, first for a local Chicago outlet and then for CNET Cars.
It's never a boring day when
takes to Twitter.
Today, Elon Musk came out of left field with a tweet saying that he's "considering" taking Tesla private at a share price of $420. In that same tweet, he claimed that he has already secured the funding for doing so.
Tesla did not immediately respond to a request for comment. However, Musk later sent out a letter to all Tesla employees detailing the plans, and laying out the reasoning. You can read all about that here.
Some outlets were initially questioning whether or not the tweet came from Musk himself, but considering how Tesla's stock price reacted to the tweet (at the time of writing, it's up almost $20 per share over its opening price), was seen by some as just another way to keep burning the folks shorting Tesla stock, who have been the target of many Musk tweets in the past.
There are a number of reasons why a publicly traded company would want to go private again. It wouldn't be subject to the whim of public shareholders. Going private also allows a company to reorganize with a focus on its long-term goals while having to worry less about any short-term losses incurred in the process. Private companies also carry fewer regulatory burdens, which can cost a company both time and money.
Tesla went public in 2010, when it offered more than 13 million shares at $17 each. Its initial public offering raised approximately $226 million. Musk's other primary venture,
, remains privately held.
Update, 11:14 p.m. PT: NASDAQ has halted Tesla's trading at 2:08 p.m. Eastern for "pending news" following Musk's tweet.
Update, 12:58 p.m. PT: Tesla stock has resumed trading after Musk has posted a letter outlining the plans. You can read the full details here.
A quick drive (literally) in Tesla's Model 3 Performance