Elon Musk tweets he may take Tesla private

Lloyd Doyle
August 7, 2018

CEO Elon Musk said on Twitter Tuesday that he's thinking about taking Tesla private, sparking a rally in the company's shares. The news comes as the Saudi government revealed a huge stake in the company.

Tesla's stock spiked Tuesday after Musk made the abrupt announcement in a terse tweet. Musk owns almost 20 percent of the company.

At $420 per share, a deal would represent a 22.8 percent premium to Tesla's closing price on Monday, making it one of the biggest go-private deals with a price tag of about $72 billion. According to the Times, the Saudis recently approached Musk and offered to buy even more Tesla shares, an offer that Musk refused.

$420 per share would be a significant premium on where Tesla is now trading, and also its performance over the first half of the year. However, they are still a long way off the $420 price teased by Musk.

"Funding secured", the tweet added, offering no further details on timing or source of funding.

After rising as much as 8.5 percent, the company's shares gave up some of their gains.

Other reports by Iphone Fresh

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