"Elon Musk considers privatizing Tesla"
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CNET News Video
CNET News Video
Elon Musk considers privatizing Tesla
It's been a whirlwind day for Tesla after CEO Elon Musk tweeted he was considering taking the company private.
Reading Elon Musk's twitter feed is a lot like riding in a Tesla.
You should buckle up because it can go from zero to 60 real quick.
Musk started his tweet spree by saying he'd secured funding for possibly taking Tesla private once it hit $420 a share.
420, it's funny because it's a weed joke I guess?
Anyway that Tweet was followed by a few more.
Elon said that shareholders could sell at $420 a share or hold shares and go private.
He also said, he hoped all investors would remain even if they went private and compared the potential move to SpaceX's structure.
Then there were more tweets about how it could work.
Trading on Tesla shares were even halted in the midst of all these tweets which wasn't a joking matter.
The wild ride finally culminated in a long blog post from Elon himself.
Published on the official Tesla website.
The post, titled Taking Tesla Private explains the reasoning behind the idea, with Musk saying it's "all about creating the environment for Tesla to operate best" and explaining what being private would mean for the company and its shareholders.
Taking the company from a publicly traded to a privately trade one would mean a few different things, including the company wouldn't have to disclose quarterly earnings reports.
They'd shake loose short sellers betting against the company, and would also allow buying and selling of shares through a periodically open trading window.
Which is very similar to what SpaceX does.
At the time of this video trading had resumed on Tesla stock, and Musk ended his blog post admitting that taking the company private would have to be approved by shareholders.
But it does seem like he's pretty serious about exploring the change.
Then again, who knows what'll happen tomorrow on Elon's twitter feed.
Stay tuned to both CNET.com and our Tesla experts at theroadshow.com for more information.
I'm Ashley Esqueda, be good humans.
Tech IndustryStock MarketElon MuskTesla
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