Around 3:30 ET, Tesla released a statement via its blog, titled "Taking Tesla Private". But he says any deal would be structured so that shareholders could opt to remain investors or be bought out at $420 per share.
Intentions to buy out public shareholders usually need to be filed with the Securities and Exchange Commission, or SEC.
It's no joke that particularly in the USA and here in Australia, public companies are using share markets more for capital subversion, tax minimisation and corporate capture rather than truly creative, risky capitalistic endeavours.
Musk's tweet came after an earlier report from the Financial Times that said Saudi Arabia's sovereign wealth fund bought a 3 to 5 percent stake in the electric auto maker, according to people with direct knowledge of the matter.
6 detained in failed drone attack aimed at Venezuela’s Maduro
A group called the "National Movement of Soldiers in T-shirts" claimed responsibility for the attack, Reuters reported . Colombia said the accusation was "baseless".
"Being forced to sell at $420 in a go-private deal would be a little bit of a bummer because, although myself and all the other Tesla investors would make money at an all-time high, we'd be missing out on a long-term ride", Russell said.
But another substantial segment of investors are convinced Tesla is doomed to fail and are betting on the company's eventual demise by becoming "short sellers" of its stock. "I'd like to apologize for, you know, being impolite on the prior call", he said. The company underwent an initial public offering in 2010. As he 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". "His mission for Tesla (to accelerate the globe's adoption of sustainable energy) is both grand and long-term, making it hard to accommodate investors quarterly expectations".
Whether Musk's tweet was ethically proper or not, all of the experts interviewed by FOX Business agree the move was unprofessional at best.
Some observers initially derided Mr. Musk's plan to take Tesla private at $420 a share as a marijuana joke - 420 is a euphemism for April 20, a popular annual cannabis celebration. Chief Executive Officer Elon Musk tweeting that he's considering taking the electric-car maker private. According to Gene Munster of VC firm Loup Ventures, going private "makes a ton of sense", for the EV builder. Factoring in $US8.8 billion ($11.9 billion) in debt, Musk's ganja-friendly target price to go private would value the company at around $US80 billion ($107.8 billion). Musk also pointed this out in his letter. Musk argues that this has allowed SpaceX to be far more "operationally efficient".
We reached out to Tesla to find out what this all means and will update when we hear more. They would continue to have separate ownership and governance structures.