Musk Says He Wants To Take Company Private, Tesla Stock Halted
Tesla chief Elon Musk just put out a Tweet so absurd, the company’s shares have been halted. Musk Tweeted this morning that he’s “considering taking Tesla private at $420. Funding secured.”
The Tweet, as you can imagine, created chaos among investors who now likely have little to no confidence in Musk’s executive capacity.
Tesla’s stock rose 7% before it was halted on the exchange. Tesla’s current value sits at $70 billion. The SEC likely halted the stock as to not allow for chaotic swings in the price to take place. Some former SEC regulators are inclined to believe that Musk has violated SEC rules with the errant tweet.
Former SEC chairman, Harvey Pitt, that Musk’s Tweet “might constitute fraud if any of the facts he disclosed are not true,” while speaking on CNBC.
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Musk continued his Tweet storm with “I don’t have a controlling vote now & wouldn’t expect any shareholder to have one if we go private. I won’t be selling in either scenario.”
He also clarified that his role would not be changing in the event that Tesla does indeed, go private.
According to Musk, shareholders would be able to either sell their shares at $420, or hold and go along with Tesla into the private sector.
Musk has often referred to himself as libertarian, but expressed a sharp disdain for public markets. In fact, according to him, he only invest in Tesla.
“I think probably one of the biggest misunderstandings is that I actually am not an investor,” Musk said at South by Southwest last March.
If Musk truly just made such an enormous announcement with Tweet, he’s in a league of his own. These are not the type of company announcements that typically made in 140 characters or less.
Photo by jdlasica
Author: Jim Satney
PrepForThat’s Editor and lead writer for political, survival, and weather categories.