Private Lies: Musk Tweets He Will Take Tesla Private

In a pair of Tweets Musk proclaimed he would take Tesla private around $420 a share. He doesn't have controlling interes

Share Price $420

Shares Rise 6.5%

In response to those Tweets, Tesla Rose 6.5% in Afternoon Trading.

Shares are up but Musk does not have controlling interest. Where's the funding?

Tesla’s stock was up 6.5% at $364.11 in early afternoon trading, meaning it would need to climb a further roughly 16% to reach $420. The Financial Times reported on Tuesday that Saudi Arabia’s sovereign-wealth fund has accumulated a roughly $2 billion stake in the company.

Tesla couldn’t immediately be reached for comment.

Publicity Stunt

My best guess is this is another publicity stunt hoping to squeeze the shorts. But if that is a success, who will be left to buy?

Mike "Mish" Shedlock

Comments
No. 1-10
Bankster
Bankster

That LBO would have to be at least $75B. Who's going to pay for that? There aren't any megafunds with that type of capital.

QTPie
QTPie

I pity the fool who would lend him the funds to do this!

Stan88
Stan88

Why would anyone agree to pay $420 a share for Tesla? For that kind of money you could buy 100% of Ford and 100% of Nissan.

Six000mileyear
Six000mileyear

Taking TESLA private reduces liquidity in the long run. People will NOT be able to sell with the click of a button once taken off the exchange. Any liquidity crunch is bad for an over-leveraged market.

stillCJ
stillCJ

Editor

Musk has made it very clear that shorting his stock is personally offensive to him, and everyone knows he does what he can to make trouble for the shorts, even though Tesla is the most shorted stock in the world. But talk is cheap, and Musk found a cheap way to put another big squeeze on the shorts. Pretty smart I'd say, but is it legal? How many more lawsuits is this going to bring TSLA?