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

Flags fly over the Tesla Inc. Gigafactory 2 which is also known as RiverBend a joint venture with Panasonic to produce solar panels and roof tiles in Buffalo New York

Flags fly over the Tesla Inc. Gigafactory 2 which is also known as RiverBend a joint venture with Panasonic to produce solar panels and roof tiles in Buffalo New York

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.

Ruby Rose cast as lesbian Batwoman for CW
In her multi-hyphenate career as a model, musician, and actress, Ruby Rose has travelled all around the world. Just after its announcement of Batwoman as the CW's next DC superhero series, the network has found its star.

Dead fetus found on airplane at LaGuardia Airport today
The plane was later moved to an American Airlines hangar. "Please check with @AmericanAir before your departure", the post said. Airport officials this morning tweeted about possible delays, but did not make mention of the reason.

We Will Grow What We Sow, Manchester United Boss Slams Transfer Board
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".

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.

Recommended News

  • New Jersey Woman Pays It Forward, Picks Up Keith Urban’s Wawa Tab

    New Jersey Woman Pays It Forward, Picks Up Keith Urban’s Wawa Tab

    When the customer in front of her Friday at Wawa was having an issue at the register, she jumped at the opportunity to help. Though an American country music star, Urban famously hails from New Zealand. "And he said, 'What's your name?' Ruth".
    Elon Musk indicates taking Tesla private as he posts 'funding secured' tweet

    Elon Musk indicates taking Tesla private as he posts 'funding secured' tweet

    Tesla spokespeople have not yet confirmed the proposal to any media outlets. - CBS News' Jillian Harding contributed reporting . Elon Musk is considering taking Tesla Inc private, the chief executive officer of the electric car-maker tweeted on Tuesday.
    Demi Lovato checks out of hospital after reported overdose

    Demi Lovato checks out of hospital after reported overdose

    She wrote in an open letter posted on Instagram: "I have always been transparent about my journey with addiction". Your positive thoughts and prayers have helped me navigate through this hard time'.
  • Elon Musk’s Tesla Claim Could Land Him in Regulatory Trouble

    Elon Musk’s Tesla Claim Could Land Him in Regulatory Trouble

    News about the idea first surfaced this afternoon on Twitter via Musk, who tweeted, "Am considering taking Tesla private at $420". A buyout at US$420 per share probably won't let Musk reap any benefit from the US$2.6b stock option grant he received this year.
    Former Malaysian PM Najib Razak to be charged with money laundering

    Former Malaysian PM Najib Razak to be charged with money laundering

    The government has said it plans to open the Equanimity to public viewing, before eventually selling it off. The country's anti-corruption authorities have issued an arrest warrant for Jho Low .
    Iran FM: Trump and Allies Isolating Themselves Over Iran Hostility

    Iran FM: Trump and Allies Isolating Themselves Over Iran Hostility

    The so-called snapback sanctions target Iranian purchases of USA dollars, metals trading, coal, industrial software and its auto sector.
  • Doug Ford announces $1 beer by Labour Day weekend

    Doug Ford announces $1 beer by Labour Day weekend

    News of buck a beer's return was met with concern from safety groups and criticism from the opposition parties. What it will mean is that the government will offer "non-financial incentives" to brewers who sell beer for $1.
    Twitter CEO: Alex Jones 'hasn’t violated our rules'

    Twitter CEO: Alex Jones 'hasn’t violated our rules'

    InfoWars is notorious for spreading demonstrably false information and conspiracy theories on a host of issues. A number of platforms have reached a different conclusion, as the crackdown on Jones intensified this week .
    Ferdinand urges Man Utd not to sell Pogba

    Ferdinand urges Man Utd not to sell Pogba

    Barcelona's opening offer, if they are serious about signing Pogba, was in the ballpark of "derisory". There is also no indication at this stage that Pogba is willing to agitate for a transfer.
  • Trevor Noah: Why Paul Manafort Must Be So Proud

    When Downing questioned why Gates had embezzled money from his boss, he used it as an opportunity to issue a public apology. Downing also ventured into territory both sides had agreed to avoid: discussion of Donald Trump's presidential campaign.
    Couple jailed for selling son to paedophiles on dark web

    Couple jailed for selling son to paedophiles on dark web

    The twisted pair and six others were part of a pedophile ring that was busted past year following an anonymous tip. On Monday, a Spanish man was sentenced to 10 years after he paid the couple in order to abuse the child.
    Brokers Opinions on: Tesla Motors inc (NASDAQ:TSLA)

    Brokers Opinions on: Tesla Motors inc (NASDAQ:TSLA)

    Tesla Motors inc (NASDAQ: TSLA ) now has a Weekly Volatility of 3.66% percent while its Monthly Volatility is at 4.19% percent. A rating of less than 2 means buy, "hold" within the 3 range, "sell" within the 4 range, and "strong sell" within the 5 range.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.