Musk Rockets Tesla Stock with Tweet to Go Private
On Tuesday, billionaire visionary Elon Musk caused turmoil for the publically traded stock of his Tesla automotive company by tweeting his desire to take the company private. He tweeted that the buyout price could be $420 per share. The stock immediately shot up to almost $380 per share, or an 11 percent gain on the day, before trading was halted. Stock market watchers have been increasing critical of Tesla’s money loosing performance, and the public irritation it has caused Musk is obviously part of what is behind such a move. If the plan were to go through, it could require $72 billion in funds. Many skeptics wonder where that would come from given the company’s money loosing performance and the enormous debt load it already carries. However, current stockholders would be given the opportunity to either cash out or become private investors. If enough stockholders opt for the later course, it would substantially cut the cost of going private. Clearly if such a bold plan comes to pass, it will say as much about investor faith in the man as it does in the company.