In a pretty radical statement (which should not come as a surprise from him though), Elon Musk said that he is considering taking Tesla Inc private, in an attempt to ease the pressure of the company, stating that the funding is already in place for it at $420 per share.
Following that statement, which was made in a post on Twitter, Tesla’s stock soared by a whooping 13%!
Elon Musk sent a letter out to all Tesla employees following the announcement, where he said that Tesla had not secured funding and that a ‘final decision has not yet been made.’
He goes on to describe the ‘wild swings’ in the Tesla stock price as a distraction and that the quarterly earnings cycle puts too much pressure on the company to make decisions that might prove to be right for a while but not necessarily in the long term.
It’s well known that Elon Musk is not a fan of running public companies as the goals he sets for every company he owns or invests in are pretty big. In turn, that makes it difficult for him to accommodate any outside intervention and especially putting up with quarterly expectations.
Meanwhile, Saudi Arabia’s Public Investment Fund has acquired shares in Tesla over the last couple of months and the fund is capable of controlling over $2 trillion in assets. Tesla has so far declined to comment on that, as well as any of the representatives for the Saudi fund.
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