Doubts grow over Elon Musk’s master plan to take Tesla private

Tesla and SpaceX CEO Elon Musk at a SpaceX press conference in Cape Canaveral Fla. on Feb. 6 2018. More

Tesla and SpaceX CEO Elon Musk at a SpaceX press conference in Cape Canaveral Fla. on Feb. 6 2018. More

The stock is far below the $420 price at which Musk said shareholders would be bought out.

Tesla stock closed Tuesday at $379.57.

It seems to have gotten the better of the billionaire who has tweeted that he's considering taking the company private.

Elon Musk disrupted multiple industries on Tuesday when the Tesla CEO [NYSE: TSLA] took to Twitter to float the idea of taking the Silicon Valley automaker private. If the statement regarding having secured the funding for the move later proves unachievable, then Musk could be in hot water with regulators over the statements that he first made on Twitter. "He has done enough things that might warrant somebody taking a close look", Pitt said.

No board member has come forward to back the plan.

In a later statement to employees and posted on Tesla's blog, Musk explained: "Being public. 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". Tesla is a legendary cash-burner, with roughly $10 billion in debts and $2 billion in reserves, and Musk would probably need in the tens of billions of dollars to buy out shareholders at the right price.

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The media speculate more about the drama than us players but we're not bothered. "Any help that can come from them is welcome". Of course, he respected the big [Wayne] Rooney and then Zlatan [Ibrahimovic] wanted to have it. "He said thank you".

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Kroenke now owns 67% of the club's shares and his offer is to buy the 30% of shares owned by minority stakeholder Alisher Usmanov. Kroenke, who - like Usmanov - first started amassing shares in Arsenal in 2007, succeeded in gaining full control in 2011.

Buying out all of Tesla's stock at $420 a share would value the company at over $80 billion - and although Musk said he had financial backing for it, he didn't give details.

Musk, his brother Kimbal and director Steve Jurvetson were not included in the statement from members Brad Buss, Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Linda Johnson Rice, and James Murdoch.

An acquisition of Palo Alto, California-based Tesla by overseas investors would likely trigger a national-security review by the Committee on Foreign Investment in the U.S. The panel, which has stepped up its scrutiny and blocked some deals lately, could impose conditions, including limits on control of the company and information sharing.

It's unclear if Musk has misled investors, let alone whether he has done so intentionally. A SoftBank spokesman declined to comment.

Investors have also questioned why the maneuver was not listed in a 69-page SEC filing, submitted last week and released Monday, that provided intricate detail of Tesla's financial outlook and coming events.

Elon Musk's tweets early on Tuesday caused plenty of speculation and controversy. "Your disclosures should create certainty in the market so that everyone has a fair and complete understanding of what is going on", Goody said.

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