Anonymous ID: 9ad7a7 Aug. 7, 2018, 1:19 p.m. No.2499437   🗄️.is 🔗kun   >>9464

Is Tesla is going private? Elon Musk claims ‘investor support is confirmed’ after tweeting plans to privatize at $420 per share, in shock announcement that HALTED the stock for almost two hours

Billionaire tech mogul Elon Musk said Tuesday that he might take Tesla private

The tweet sent Tesla shares higher over 6% and the stock was later halted

Officials were confused about whether Musk was serious about the transaction, while others have questioned if it's an example of market manipulation

Tesla's stock halted shortly after 2 pm (ET) but resumed trading just before 4pm

Musk sent a letter to staff saying 'investor support is confirmed' but added that 'a final decision has not yet been made,' presumably awaiting a shareholder vote

 

Shares of Tesla were halted in afternoon trading on Tuesday after CEO Elon Musk tweeted that he's considering taking the electric car company private at $420 a share.

 

Musk said the take-private transaction has received investor support and now rests on a shareholder vote in order for it to become official.

 

In a letter to employees, Musk stressed that 'a final decision has not yet been made,' but that going private would create an environment for 'Tesla to operate best.'

 

The initial announcement sent Tesla's stock surging 6.8 percent to $365.36 - adding $900 million to Musk's fortune in the process.

 

The stock was halted at $367 a share shortly after 2 p.m. (ET), as some grew concerned that Musk's tweets were an attempt at market manipulation.

 

Shares resumed trading shortly before 4 p.m. (ET) and were climbing more than 11 percent to $379.89.

 

The tweets are the latest example of a long string of bizarre outbursts from the billionaire tech mogul.

 

https://www.dailymail.co.uk/sciencetech/article-6036427/Musk-tweets-Tesla-private-shares-roar.html

Anonymous ID: 9ad7a7 Aug. 7, 2018, 1:21 p.m. No.2499464   🗄️.is 🔗kun   >>9501

>>2499437

MUSK'S EMAIL TO STAFF AFTER TWEETING PLAN TO GO PRIVATE

Subject: Taking Tesla Private

 

August 7, 2018

 

Earlier today, I announced that I’m considering taking Tesla private at a price of $420/share. I wanted to let you know my rationale for this, and why I think this is the best path forward.

 

First, a final decision has not yet been made, but the reason for doing this is all about creating the environment for Tesla to operate best. 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. Finally, as the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company.

 

I fundamentally believe that we are at our best when everyone is focused on executing, when we can remain focused on our long-term mission, and when there are not perverse incentives for people to try to harm what we’re all trying to achieve.

 

This is especially true for a company like Tesla that has a long-term, forward-looking mission. SpaceX is a perfect example: it is far more operationally efficient, and that is largely due to the fact that it is privately held. This is not to say that it will make sense for Tesla to be private over the long-term. In the future, once Tesla enters a phase of slower, more predictable growth, it will likely make sense to return to the public markets.

 

Here’s what I envision being private would mean for all shareholders, including all of our employees.

 

First, I would like to structure this so that all shareholders have a choice. Either they can stay investors in a private Tesla or they can be bought out at $420 per share, which is a 20% premium over the stock price following our Q2 earnings call (which had already increased by 16%). My hope is for all shareholders to remain, but if they prefer to be bought out, then this would enable that to happen at a nice premium.

Second, my intention is for all Tesla employees to remain shareholders of the company, just as is the case at SpaceX. If we were to go private, employees would still be able to periodically sell their shares and exercise their options. This would enable you to still share in the growing value of the company that you have all worked so hard to build over time.

Third, the intention is not to merge SpaceX and Tesla. They would continue to have separate ownership and governance structures. However, the structure envisioned for Tesla is similar in many ways to the SpaceX structure: external shareholders and employee shareholders have an opportunity to sell or buy approximately every six months.

 

Finally, this has nothing to do with accumulating control for myself. I own about 20% of the company now, and I don’t envision that being substantially different after any deal is completed.

Basically, I’m trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, and where there is as little change for all of our investors, including all of our employees, as possible.

This proposal to go private would ultimately be finalized through a vote of our shareholders. If the process ends the way I expect it will, a private Tesla would ultimately be an enormous opportunity for all of us. Either way, the future is very bright and we’ll keep fighting to achieve our mission.

 

Thanks,Elon