NEW YORK (AP) — The Latest on Tesla CEO Elon Musk proposing to take the electric car private at $420 per share (all times local):
Tesla CEO Elon Musk is laying out his rationale for possibly taking the company private, saying the move would free the electric car maker to focus on long-term goals, rather than the quarterly concerns of Wall Street.
Musk detailed his proposal in a blog post on the company’s website Tuesday, hours after stunning the company’s followers by casually tweeting that he might take it private.
Musk complains that Tesla is “the most shorted stock in the history of the stock market” and many people “have the incentive to attack the company.”
He says no final decision has been made. But he says any deal would be structured so that shareholders could opt to remain investors or be bought out at $420 per share.
Tesla CEO Elon Musk’s surprising proposal to take the electric car maker private has prompted regulators to suspend trading in the company’s stock.
The unusual step taken early Tuesday afternoon came shortly after Musk dropped a bombshell on his Twitter account by announcing he had lined up the financing to buy all of Tesla’s stock at $420 per share. That would cost about $70 billion, making it one of the biggest buyouts in U.S. history.
The disclosure initially raised questions whether the eccentric Musk was joking, but he then amplified on his plan in a subsequent tweet that said he intended to create a special fund that would allow all current Tesla shareholders to retain a stake in the car maker if they want.
Tesla CEO Elon Musk says he is considering taking the electric car maker private.
Tesla’s stock spiked Tuesday after Musk made the abrupt announcement in a terse tweet. He said is considering taking the company private at $420 a share and already has secured funding.
Tesla shares are up more than 5 percent at $360.64.