Tesla shareholder tells IGTV he’s 'not thrilled' about the take-private plan

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Worthy of note, however, is that this announcement did not come out of the blue.

Mr Musk, a 47-year-old investor and engineer, stunned financial markets on Tuesday, when he revealed on Twitter he was considering a take-private deal for Tesla, an auto manufacturing pioneer that developed the world's first ever premium all-electric sedan vehicle. The company's largest shareholders have declined to comment. As far as Musk's stated share price to take the company private, analysts stated that there's upside risk in the near term to around $400 but downside risk to $340, "if no firmer details emerge, as investors would likely increasingly debate Musk's credibility and over-focus on the shares' price and volatility". Musk said he wants all Tesla investors to continue to hold private company stock.

Buying Tesla in its entirety would cost $72 billion, based on the company's outstanding stock as of July 27. Tesla's share price jumped on that news. At first many considered this to be one of Elon's twitter moments where he randomly tweets about potential ideas and goals of his.

Afterward, stocks were halted for an hour.

Legal experts have told The Post that he would have to show that some kind of agreement had been arranged prior to his Tuesday tweet. More so even than the significant financial costs associated with being public is the management time wasted in relentlessly repetitive discussions with fund managers and sell- and buy-side analysts.

Now, both are joining hands which could only bode well for everyone involved. SEC enforcement attorneys in San Francisco have begun gathering information on Tesla; however, this could end up leading to nothing.

In an internal letter to Tesla employees, Musk confirmed he was considering taking the company private in order to free it from "short-term thinking" and other "distractions".

Saudi's PIF, on the other hand, would be raising the value of all of its other investments through the mere association with a firm as internationally renowned as Tesla.

Also Read: What Tesla's China Megafactory means for Pakistan?

SoftBank is now not interested in a deal for Tesla after earlier this year taking a stake in General Motors Co's self-driving unit, Cruise, Reuters reported earlier on Wednesday.

Like Dell, Musk has a big stake in the company he runs.

Since that initial tweet, Musk has offered no evidence to back up the statement. The money-losing and cash-burning company is an unlikely candidate for debt investors to be willing to help go private.

"They can set the price and where the shares are going", said Justin Byers, chief data officer for the Prime Unicorn Index, which tracks the performance of 102 private US companies valued at $500 million or more.

The board's request for more details adds to the scrutiny that Musk's proposal is facing from investors and regulators.

It now has a market value of $61 billion, and at a share price of $420, the company would be worth around $71.6 billion.

The PIF quietly built up a stake of between 3% and 5% in the company, according to the Financial Times.

Tesla's share price surged after the tweet, rising by as much as 12%, to over $US381, before trading closed.

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