Tesla board mulls de-listing plan

Share
Tesla board mulls de-listing plan

Tesla has moved to further formalise the prospect of the electric vehicle company undergoing a buyout with a statement from the company's directors.

Ford Executive Vice President Jim Farley on the benefits of being a public company after Tesla CEO Elon Musk tweeted he is considering taking his company private.

They said this "included discussion as to how being private could better serve Tesla's long-term interests". "The board has met several times over the last week and is taking the appropriate next steps to evaluate this". The company already has a $2 billion investment from Saudi Arabia's sovereign fund as well as Tencent, which took a 5 percent stake in 2017.

"Distraction or not, the move feels right even if Musk is downplaying how supportive public markets have been".

Mr Musk said in his tweet on Tuesday that shareholders would be offered $420 (£326) per share, valuing the business at more than $70bn. Shares were down 3 percent in premarket trading after closing up 11 percent at $379.57 on Tuesday.

It's possible Musk could persuade some large institutional investors to remain shareholders in the private company, which could reduce his funding needs, Sacconaghi said.

Two of the potential stumbling blocks to Musk's plan include the stock price premium not being enough to get the existing shareholders on board to support the sale and coming up short on the announced funding to complete the transition.

Musk has downplayed the power of the tweets he launches at all hours to his 22 milion Twitter followers: "My tweets are literally what I'm thinking at the moment, not carefully crafted corporate bs, which is really just banal propaganda", he said in June. And as the stock price has climbed this year, so too have the bets against it.

On Wednesday, Tesla's board said it was evaluating the proposal.

China's Tencent Holdings Ltd, which took a 5-percent stake in Tesla past year, could also be a possible partner.

Several members of Tesla's board issued a joint statement on the company's investor-relations site.

He set a target stock price of $420 a share and said he had investors lined up to purchase the company at that price.

"Last week, Elon opened a discussion with the board about taking the company private", the board members wrote. The statement wasn't signed by Mr. Musk, his brother Kimbal Musk or the seventh independent director Steve Jurvetson, who is now on leave.

Share

Advertisement

Related Posts

The Academy Adds Best Popular Film Oscar Category
The Oscars are getting a shakeup in 2019, starting with a strict three-hour time limit and a new category to honor popular film. The most intriguing part of this - not marking my calendar for 2020 yet, sorry - is the one about "popular film".

GOP congressman busted for insider trading
They say the son traded on the inside information and passed it to a third defendant, Stephen Zarsky. Chris Collins , his son and Zansky avoided $768,000 in losses, according to the indictment.

Johnny Depp’s B.I.G. movie pulled a month before release
Last month, location manager Greg "Rocky" Brooks filed suit against Depp for allegedly hurling obscenities at and punching him. The first " City Of Lies " trailer was released in May, on what would have been Biggie's 46th birthday.

Carrie Underwood announces pregnancy, tour dates
She also opened up about having "a few more downs than ups last year" after a scary fall left her with a broken wrist and 50 stitches in her face.

The Person That’s Preventing Barcelona From Signing Paul Pogba
The France World Cup victor has been linked with a move to the Nou Camp amid speculation over his future at Old Trafford . The Mail reports that Pogba has sent United executive vice-chairman Ed Woodward a message to inform him of his decision.

Hurricane John absorbs tropical storm off Mexico
Meanwhile, Subtropical Storm Debby formed far out over the north Atlantic, but it was expected to be a short-lived storm. Combined with high tides, this could lead to some overwash of low-lying coastal areas and perhaps some beach erosion.

Angelina Jolie seeks 'meaningful' child support from Brad Pitt
Brad Pitt is hitting back hard at Angelina Jolie's accusations that he hasn't paid a dime in child support for their six kids. Jason LaVeris via Getty Images Angelina Jolie and Brad Pitt pictured in 2015 during their last public appearance as a couple.

Snapchat's new design is driving users away in bunches
Snap lost about 1 million users in each of its three geographic reporting regions: North America, Europe and rest of world. Snap's CEO Evan Spiegel blames the two percent decline in daily active users to "the disruption caused by our redesign".

These Astronauts Will Fly SpaceX, Boeing Spacecraft to the ISS
Also, flying on the first crewed test flight of SpaceX's Crew Dragon spacecraft will be Robert Behnken and Douglas Hurley . SpaceX CEO Elon Musk , she said, founded the company in 2002 to build the safest and most reliable spacecraft possible.

US urges Canada and Saudi Arabia to resolve feud
Saudi Arabia's main state wheat buying agency has told grains exporters it will no longer buy Canadian wheat and barley. Investigations against them are continuing and charges against them will be made public once cases reach the courts.

© 2015 ExpressNewsline. All Rights reserved.