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Tesla lookin sick VOL. potentially insolvent soon
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Tesla weighs taking company private, but no decisions made yet
Published 2 Hours Ago Updated 1 Min AgoCNBC.com
Tesla jumps on Elon Musk tweet to go private 2 Hours Ago | 03:10
Tesla CEO Elon Musk stunned investors Tuesday with a string of tweets saying he is considering taking the company private, in what would be the largest deal of its kind.
"Am considering taking Tesla private at $420. Funding secured," Musk said in a tweet shortly before 1 p.m. Musk discussed the plans further in a blog post later Tuesday.
From there Musk tweeted several times. In responses to questions on Twitter, Musk said he will ensure the prosperity of shareholders "in any scenario." If Tesla went private, current investors could keep their stakes in Tesla through a special fund, or sell their shares at $420, he said.
Shares jumped after Musk's first tweet, trading as high as $371.15 before giving back gains. Shortly after 2 p.m. the stock was halted at $367.25, up 7.39 percent for the day. Trading in Tesla's stock would resume at 3:45 p.m. the company said.
Tesla shares were already trading higher on a report of a new stake from the Saudi Arabia sovereign wealth fund.
In the past year, Tesla shares have traded as low as $244.59 in April and as high as $389.61 in September.
Tesla went public in 2010. Its current market value is $61 billion. At a share price of $420, the company would be worth $71.3 billion.
Although Musk mentioned funding in his initial tweet, a blog post from Tesla did not include any mention of financing. CNBC also contacted a number of Wall Street banks and none of them was aware of any transaction or had committed to funding a leveraged buyout of Tesla.
The Securities and Exchange Commission also declined to comment on the matter. However, companies are allowed to use social media outlets like Facebook and Twitter to announce news, the SEC said in 2013.
He also said he does not currently have a controlling vote in the company and wouldn't expect a single shareholder to have one if the company were private. He said he had no intention of selling his stake, and he said he would remain as CEO.
Taking Tesla private could remove some of the pressure on the closely watched company. Private firms, for example, are not required to publicly report quarterly earnings. Musk also said being private would end "negative propaganda from shorts."
Musk has said he expects Tesla to begin being profitable in the third quarter of 2018.
Investors have been concerned about the amount of cash Tesla has been burning through and whether the company would need to raise additional funds to support its growth plans, which include introducing a semi-truck, a crossover SUV called the Model Y, more factories around the world, and other projects.
- Tesla shares were halted at $367 a share on Tuesday after Musk issued a string of tweets about possible taking the company private at $420 a share.
- Tesla's market value at $420 a share would be about $71 billion.
Published 2 Hours Ago Updated 1 Min AgoCNBC.com
Tesla jumps on Elon Musk tweet to go private 2 Hours Ago | 03:10
Tesla CEO Elon Musk stunned investors Tuesday with a string of tweets saying he is considering taking the company private, in what would be the largest deal of its kind.
"Am considering taking Tesla private at $420. Funding secured," Musk said in a tweet shortly before 1 p.m. Musk discussed the plans further in a blog post later Tuesday.
From there Musk tweeted several times. In responses to questions on Twitter, Musk said he will ensure the prosperity of shareholders "in any scenario." If Tesla went private, current investors could keep their stakes in Tesla through a special fund, or sell their shares at $420, he said.
Shares jumped after Musk's first tweet, trading as high as $371.15 before giving back gains. Shortly after 2 p.m. the stock was halted at $367.25, up 7.39 percent for the day. Trading in Tesla's stock would resume at 3:45 p.m. the company said.
Tesla shares were already trading higher on a report of a new stake from the Saudi Arabia sovereign wealth fund.
In the past year, Tesla shares have traded as low as $244.59 in April and as high as $389.61 in September.
Tesla went public in 2010. Its current market value is $61 billion. At a share price of $420, the company would be worth $71.3 billion.
Although Musk mentioned funding in his initial tweet, a blog post from Tesla did not include any mention of financing. CNBC also contacted a number of Wall Street banks and none of them was aware of any transaction or had committed to funding a leveraged buyout of Tesla.
The Securities and Exchange Commission also declined to comment on the matter. However, companies are allowed to use social media outlets like Facebook and Twitter to announce news, the SEC said in 2013.
He also said he does not currently have a controlling vote in the company and wouldn't expect a single shareholder to have one if the company were private. He said he had no intention of selling his stake, and he said he would remain as CEO.
Taking Tesla private could remove some of the pressure on the closely watched company. Private firms, for example, are not required to publicly report quarterly earnings. Musk also said being private would end "negative propaganda from shorts."
Musk has said he expects Tesla to begin being profitable in the third quarter of 2018.
Investors have been concerned about the amount of cash Tesla has been burning through and whether the company would need to raise additional funds to support its growth plans, which include introducing a semi-truck, a crossover SUV called the Model Y, more factories around the world, and other projects.
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How is Tesla worth 71 billion dollars
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SEC Investigation for Market Manipulation coming if Musk doesn't have $72Billi lined up at the moment of his tweet.
Lawsuits from major Funds are imminent.
https://finance.yahoo.com/news/teslas-elon-musk-just-invited-big-lawsuit-193337579.html
A stock price above $360 would mean that Tesla would not have to repay $920 million of debt due in March 2019 with cash.
If Tesla is forced to repay the debt with cash, the company will likely have to do another capital raise, contrary to what the management team promised in Q2.
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- Sep 25, 2004
I called this awhile ago. Fisker had a big hill and they got absorbed and the car is back out now as something else. They weren’t trying to battle the big dogs.
Tesla would be a monumental fail if it went belly up
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Highly unlikely Tesla will go belly up. Tesla's corp path resembles Dell. But Mike Dell tanked his Company first to drive shares down to then take it private a low share price.
I agree with Jim Chanos that Tesla is a good Co but fair share price is dramatically lower.
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I think it depends how you're valuing the shares. If you account only for current auto manufacturing, I agree it's not worth 60 bil, let alone 71. But if you add in solar potential and commercial battery/power storage, and increased auto production to several thousand more per month, among their other avenues, the valuation could creep close to 70. Timeframes play a factor too, obviously, if you're using the DCF method, but I personally think TSLA will be worth a lot more in a few years than they are now with some patience and luck.
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- 30,235
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- Dec 23, 2009
I'll take payment in form of repsWell put!! Sold. What are your fees & where do I sign??
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Well put, really matters what you think of their future and if Elon has too much going on. He can get that $84 bil no issue.
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- Sep 25, 2004
Its gonna be all luck with this one fellas. You can compare it to other situations like Dell, etc but this is a different animal he's going up against.
That animal is the auto industry...
We'll see how it goes but that valuation value of it is laughable. That has to be a successful thriving Tesla in the future hitting its roadmaps years and years from now. I'm rooting for em since there is space for everyone but its gonna be rough...
That animal is the auto industry...
We'll see how it goes but that valuation value of it is laughable. That has to be a successful thriving Tesla in the future hitting its roadmaps years and years from now. I'm rooting for em since there is space for everyone but its gonna be rough...
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This goes against everything Apple stands for but they should swoop in with their trillion and buy the whole operation.
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I Elon is brilliant but he’s also a basket case so...
Only a matter of time.
That said, if I had it like that I’d push a Model S in a heartbeat.
Only a matter of time.
That said, if I had it like that I’d push a Model S in a heartbeat.
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- May 23, 2005
Tesla's stock falls sharply after Elon Musk's tearful interview
by David Goldman @DavidGoldmanCNNAugust 17, 2018: 1:10 PM ET
tearful interview with The New York Times, Musk said this has been "the most difficult and painful year" of his career. He said he works 120 hours some weeks and has trouble sleeping. Musk is also CEO of SpaceX and The Boring Company.
Investors weren't sympathetic.
The stock closed down 9% on Friday, and it's down 21% since the day Musk tweeted he had secured funding for a private takeover of Tesla (TSLA).
Musk hasn't exactly given investors confidence that he's on the ball.
He admitted in the Times interview that he hadn't cleared his tweet with anyone at Tesla before firing it off midday August 7.
He also said that the price he chose — $420 a share — was somewhat arbitrary. He wanted it to be a 20% premium, which would have been around $419. So he tweeted $420 because it was "better karma."
Musk explained himself in a blog post this week, and he left the impression that he hadn't exactly secured the funding.
He said he left a July 31 meeting with the Saudi sovereign wealth fund "with no question that a deal with the Saudi sovereign fund could be closed, and that it was just a matter of getting the process moving."
That is far more preliminary than his tweet led investors to believe. The board also said it hasn't even fully explored whether to go private.
That's one of the reasons the stock has fallen so much after soaring 11% on the day of his tweet.
But Musk's tweet has also opened Tesla to increased scrutiny and lawsuits. The SEC is reportedly investigating Musk's tweet and had already been looking into Tesla's Model 3 production troubles. SEC has declined comment to CNNMoney.
The Times reported that some Tesla board members are concerned about Musk's frequent use of Ambien as well as his occasional use of recreational drugs.
"We would like to make clear that Elon's commitment and dedication to Tesla is obvious," Tesla said in a statement. "Over the past 15 years, Elon's leadership of the Tesla team has caused Tesla to grow from a small startup to having hundreds of thousands of cars on the road that customers love, employing tens of thousands of people around the world, and creating significant shareholder value in the process."
by David Goldman @DavidGoldmanCNNAugust 17, 2018: 1:10 PM ET
tearful interview with The New York Times, Musk said this has been "the most difficult and painful year" of his career. He said he works 120 hours some weeks and has trouble sleeping. Musk is also CEO of SpaceX and The Boring Company.
Investors weren't sympathetic.
The stock closed down 9% on Friday, and it's down 21% since the day Musk tweeted he had secured funding for a private takeover of Tesla (TSLA).
Musk hasn't exactly given investors confidence that he's on the ball.
He admitted in the Times interview that he hadn't cleared his tweet with anyone at Tesla before firing it off midday August 7.
He also said that the price he chose — $420 a share — was somewhat arbitrary. He wanted it to be a 20% premium, which would have been around $419. So he tweeted $420 because it was "better karma."
Musk explained himself in a blog post this week, and he left the impression that he hadn't exactly secured the funding.
He said he left a July 31 meeting with the Saudi sovereign wealth fund "with no question that a deal with the Saudi sovereign fund could be closed, and that it was just a matter of getting the process moving."
That is far more preliminary than his tweet led investors to believe. The board also said it hasn't even fully explored whether to go private.
That's one of the reasons the stock has fallen so much after soaring 11% on the day of his tweet.
But Musk's tweet has also opened Tesla to increased scrutiny and lawsuits. The SEC is reportedly investigating Musk's tweet and had already been looking into Tesla's Model 3 production troubles. SEC has declined comment to CNNMoney.
The Times reported that some Tesla board members are concerned about Musk's frequent use of Ambien as well as his occasional use of recreational drugs.
"We would like to make clear that Elon's commitment and dedication to Tesla is obvious," Tesla said in a statement. "Over the past 15 years, Elon's leadership of the Tesla team has caused Tesla to grow from a small startup to having hundreds of thousands of cars on the road that customers love, employing tens of thousands of people around the world, and creating significant shareholder value in the process."
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Buy buy buy
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- Jul 20, 2009
Even Fousey looking at Elon like "damn famb, get it together"
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- Nov 2, 2006
They bout to come get ya boy
SEC Sues Elon Musk for Fraud, Seeks Removal From Tesla
https://www.wsj.com/articles/elon-musk-sued-by-the-sec-for-securities-fraud-1538079650
SEC Sues Elon Musk for Fraud, Seeks Removal From Tesla
https://www.wsj.com/articles/elon-musk-sued-by-the-sec-for-securities-fraud-1538079650
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- Mar 22, 2003
Let it go down a bit, buy even more shares. This is completely a long term play.
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Telsa
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- May 27, 2017
The auto industry is catching up to tesla. The model 3 should have been released sooner
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- Mar 22, 2003
I mean, we have the answer to all of the questions you posed lol.
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My biggest pet peeve with Tesla is it's a 60k car that was advertised as a 35k one.
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I am a huge fan of the new Jaguar electric and the rumor of the $18k 250 mile range Honda Fit has me excited
