What Would Happen if Tesla Went Private?

Tesla CEO Elon Musk made waves earlier this month, when he publicly mused about the possibility to take the company private. In a tweet on Tuesday, August 7, 2018 Musk said he was “considering taking Tesla private at $420”, adding that he had already secured funding for a potential buyout. In an email to employees published by Tesla later the same day, Musk explained the rationale behind his considerations: “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.” Tesla’s shares have indeed been highly volatile in the last 12 months, dropping from $389 in September 2017 to $248 in April and climbing back to $380 on Wednesday. Musk’s announcement that shareholders would get $420 a share in a potential buyout, naturally sent the stock soaring 11 percent on Tuesday. This in turn got the attention of the SEC, who demanded a statement from Tesla and may now be looking into whether Musk’s tweet can be considered stock price manipulation. If Tesla really does go private, it would be the largest such deal in history. According to Dealogic, the deal would be valued at around $72 billion.

For more information and stats on different industries around the world, visit Statista by CLICKING HERE.

Featured Posts
Search By Tags
No tags yet.

© 2018 by Jennifer N. Coombs and GradMoney. Proudly created with Wix.com


All rights reserved. Use of this Site constitutes acceptance of our terms and conditions and privacy policy.


Restrictions: The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of GradMoney or Jennifer N. Coombs.


Disclaimer: All data and information provided on this site is strictly the author’s opinion and does not constitute any financial, legal or other type of advice. GradMoney, nor Jennifer N. Coombs, makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses or damages arising from its display or use. We also do not make any personal investments on behalf of readers, nor do we offer specific trading recommendations to readers. GradMoney is not a licensed broker dealer. All investment actions as a result of GradMoney’s articles are to be made at the discretion of the individual investor. All investments contain risks; GradMoney assumes no liability for any loss of income or principal.


All questions or inquiries my be directed to the attention of Jennifer N. Coombs.