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Elon Musk hints at Tesla going private in cryptic Twitter post, sends stocks soaring

Elon Musk hints at Tesla going private in cryptic Twitter post, sends stocks soaring

"Am considering taking Tesla private at $420. Funding secured," Elon Musk said on Twitter on Tuesday, causing stocks in the company to surge to 11 percent. It's unclear if the SpaceX founder meant what he wrote, but according to a report by the New York Times, the company's stock was already up due to a report that Saudi Arabia would be securing a 5 percent stake in the company.

Musk didn't expand on what he meant by the tweet on Twitter but he did send out an internal memo to employees to explain the rationale behind the tweet highlighting three main reasons behind his intentions.

"First, a final decision has not yet been made, but the reason for doing this is all about creating the environment for Tesla to operate best," explained Musk.

"As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders. Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term," he continued.

Tesla is currently valued at $63.8 billion. If Musk were to take his company private, analysts say the value of the company would jump to $82 billion.

As far as SEC rules go, using social media for public company announcements is fine if investors are alerted prior to the announcement.

To see more from Doc Thompson, visit his channel on TheBlaze and listen live to “The Morning Blaze with Doc Thompson” weekdays 6 a.m. – 9 a.m. ET, only on TheBlaze Radio Network.

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BlazeTV Staff

BlazeTV Staff

News, opinion, and entertainment for people who love the American way of life.
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