Tesla might go private, according to an email released by company officials to Tesla employees and a Tweet the CEO Elon Musk posted earlier. The email stated that the company is looking to privatize at $420 per share to protect itself from the investment fluctuations that are subject to daily news. Doing this, Tesla will be able to ignore the negative comments by its investors and focus more on building a sustainable transport business.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
Shrugging away the critic’s comments, Elon Musk clarified that he owns 20 percent shares of the company. He believes his share percentage won’t change much if the company stays public or goes private. That is why the final decision to go private rests with the company’s shareholders.
Musk shook the automotive world with his tweet which got thousands of retweets in a matter of minutes. He tweeted again in about an hour stating that the current shareholders can either stay with the company as it goes private or they can sell their shares at a price of $420 and vote out.
Shareholders could either to sell at 420 or hold shares & go private
— Elon Musk (@elonmusk) August 7, 2018
Following the announcement, trading came to a halt, which is unusual and against the SEC rules and regulations. However, trading started back again after some time opening the Tesla stock at $341.99. The stock gained after the start of trading but fluctuated after the Tesla board issued a statement regarding the debacle.