Doubts grow about Musk's drive to take Tesla private

12 August, 2018, 00:36 | Author: Regina Silva
  • Doubts grow about Musk's drive to take Tesla private

It didn't take long for the euphoria to fade.

Musk said on Twitter on Tuesday that he was considering withdrawing from the market the stock price of the deficit electric auto manufacturer at a price of U.S. $ 420 per share, a move that would value an eventual agreement in excess of USA $ 70 billion.

It's also possible Musk has some unconventional plan that would take Tesla private without using traditional sources.

Tesla shares fell 2.4 per cent to US$370.34 on Wednesday after closing up 11 per cent on Tuesday.

Going private is one way to avoid scrutiny by the public market as Musk and the company tackle those challenges. On Wednesday, less than 24 hours after Musk's initial tweets, company board members said they had been made aware of Musk's plan last week.

The dearth of details could be problematic.

Investors - along with the SEC - are raising concerns about CEO Musk's proposal to take Tesla private. "Something that might happen?" said Ira Matetsky, a partner at Ganfer & Shore in NY, outlining questions the SEC might ask. Judith Burns, an SEC spokeswoman, declined to comment.

Chelsea duo leave on season-long loans
Chelsea striker Michy Batshuayi has confirmed that he is on his way to Valencia with a cryptic post on his Twitter page. Zouma joined Chelsea from Saint-étienne in January 2014 and made 71 appearances for the Blues first team.


Trump puts pressure on Turkey by doubling down on tariffs
One of the triggers of the turmoil has been a standoff with the USA over detained American pastor Andrew Brunson . Another option is aid from other countries - possibly Qatar or China, an ally in the BRICS group.


In book, Omarosa says Trump is a bigot, behaved 'like a dog'
At the time, an early Apprentice producer took to Twitter to say "there are far worse" behind-the-scenes tapes from the show. She also spoke out about a potential tell-all book and what she really thinks of Trump's tweeting .


The agency declined to comment and Tesla did not immediately respond to requests for comment. They said he had "addressed the funding for this to occur", without providing details.

Munster estimates Musk will need $25 billion to $30 billion to buy out all the Tesla shareholders who want to sell at $420.

"They're being bombarded with questions that we don't think are as relevant to the long-term value of the company", said Sam Korus, an analyst for ARK Investment Management, which had 443,874 Tesla shares as of June 30. The courts have upheld the right of companies to release news by tweet, but they and their managers still must live with specific guidelines. The problem may be that Musk amply has demonstrated since he came into the public eye more than a decade ago that he is, in fact, a man of many visions, all of which he seems passionate about. "I wish we could be private with Tesla", he told Rolling Stone in an interview published in November. Bloomberg News, which first reported on that meeting, said the talks failed to progress due to disagreements over ownership.

Other ventures also got the "funding secured" treatment. CNBC reported that officials hope a privatization program, including the sale of 5% of oil giant Saudi Aramco, will raise $300 billion to help fund the creation of NEOM, which is under construction, and that more money will be invested by the private sector.

Tesla's board earlier on Wednesday said it was evaluating taking the company private, which would be the biggest leveraged buyout of all time.

There are plenty of other reasons to doubt Musk's plan. "Would create special objective fund enabling anyone to stay with Tesla".

Morgan Stanley analyst Adam Jonas said investors would be slow to forgive if no buyout transpires. Finally, as the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company. "It may be challenging for Tesla shareholders to fathom the "forget-about-the-going-private-thing-let's-go-back-to-normal" scenario".

Recommended:

  • Justin Bieber surprised the odd  behavior

    Justin Bieber surprised the odd behavior

    We've got details on whether Selena Gomez would get in touch with Justin Bieber if things fall apart with fiancée Hailey Baldwin. Justin Bieber has revealed he was just having a "bad day", when he was pictured crying with Hailey Baldwin .
    Shaman kept woman in cave for 15 years, raped her

    Shaman kept woman in cave for 15 years, raped her

    The shaman faces up to 15 years in prison if convicted of coercing a minor into intercourse and may face other charges, as well. Police say that in 2003, the 13-year-old girl was brought to him for treatment by her own family and stayed behind with him.
    First Look at Gal Gadot as Shank in Wreck-It Ralph 2

    First Look at Gal Gadot as Shank in Wreck-It Ralph 2

    Gadot announced the casting via her Twitter page with a picture of the character that she will be voicing. This " Ralph Breaks the Internet " scene with the Disney princesses needs to lead to its own spinoff.
  • Paul Pogba vows to give his all for Manchester United

    Paul Pogba vows to give his all for Manchester United

    Eric Bailly did superbly to deny Iheanacho, and Vardy bundled Shaw off the ball to send in a cross that Gray nearly flicked home. The biggest news is World Cup victor Paul Pogba being named as captain; whether this is a permanent decision remains to be seen.
    Odds slashed on Bayern Munich Star's transfer

    Odds slashed on Bayern Munich Star's transfer

    His agent Christian Nerlinger is expected to hold talks with PSG sporting director, Antero Henrique on Thursday with Bayern prepared to sell the 29-year-old.
    Jury awards $440m to man who blames Monsanto's Roundup for cancer

    Jury awards $440m to man who blames Monsanto's Roundup for cancer

    In his closing argument, the plaintiff's attorney, Brent Wisner, told the jury it was time for Monsanto to be held accountable. Roundup is widely available in British garden centres and is thought to be the most commonly used weedkiller in the world.
  • Crocs says it's closing manufacturing facilities; executive to resign

    Crocs says it's closing manufacturing facilities; executive to resign

    In addition, executive vice president and CFO Carrie Teffner will step down in the coming weeks for another role in the company. Last March, Crocs said it will close about 160 of its 558 retail stores by the end of 2018.
    Imax To Host Marvel Film Marathon For MCU’s 10-Year Anniversary

    Imax To Host Marvel Film Marathon For MCU’s 10-Year Anniversary

    And it all gets underway later this month, when the Marvel Cinematic Universe storms theaters for an unforgettable week of movies. Here's their Tweet where you can vote between Iron Man , Captain America: The First Avenger , The Avengers , and Black Panther .
    Everything I did was under self defence: Ben Stokes

    Everything I did was under self defence: Ben Stokes

    He said that as they walked up the road after leaving Mbargo there had been "banter" between him and Ali and O'Connor and Barry. Hale said that initially he thought Stokes had targeted him first but the video shows the cricketer going for his friend, Ali.
  • Hurricane Hector weakens to category 3

    Hurricane Hector weakens to category 3

    A Tropical Storm Warning means that tropical storm conditions are expected somewhere within the warning area later today. Swells generated by Hector will bring large and unsafe surf to portions of the main Hawaiian islands through tonight.
    Storm swamps Tiger's charge as Woodland leads rain-hit PGA

    Storm swamps Tiger's charge as Woodland leads rain-hit PGA

    After the 36-hole cut is made, the third round will be played in threesomes going off both the first and 10th tees. Follow along below to see for yourself. "I've been so in the zone, you don't know where you are".
    Man United vs Leicester City, Premier League

    Man United vs Leicester City, Premier League

    Manchester United boss Jose Mourinho has attacked his critics at today's first media conference for the new season. Chelsea and Arsenal are in a transitional period with Maurizio Sarri and Unai Emery taking over this summer.


Popular

Israel Kills Two Palestinians, Wounds Hundreds at Gaza Protest
Hamas said a ceasefire had been reached "on the basis of mutual calm", and had gone into effect at midnight on Thursday. Over 180 mortar shells and rockets were launched by Hamas throughout Wednesday and Thursday, the Israeli military said.

England vs India 2nd Test, Day 3: Hosts lose openers Jennings, Cook
While Chris Woakes and Johnny Bairstow were tormenting the Indian bowlers, Kohli had to leave his troops to treat his sore back. The pressure will be on their batsman, but saving the Test will be tough considering the form Anderson is in.

NCAA's new proposed rules blindside NBA, USA Basketball officials
The NCAA is adopting changes it hopes will improve its enforcement process when handling cases of rules violations. In all, they are mostly common sense efforts to try and fix a system that is badly broken.

Trump condemns racism and violence ahead of anniversary of fatal Charlottesville rally
Coalition, comprised of 38 organizations and community groups, meets regularly to plan counter attacks to the white nationalists. Virginia State Police Superintendent Gary Settle said more than 700 state police will be activated during the weekend.

Pogba penalty run-up after Sanchez row steals show as Man Utd win
The Belgium-born Brazilian was calm and composed in the United engine room, quietly breaking up play and setting the Reds off on attacks.

Space Force to Become Sixth Branch of Armed Forces
Kelly was referring to the Air Force Space Command, though the group has had different names over the years. The Trump administration is planning to create a Space Force , a new branch of the USA military, by 2020 .

Aerial Photos Show Carr Fire Destruction, Devastation in Redding Area
The 181,000-acre (73,250-hectare) Carr Fire has destroyed almost 1,100 homes. "It looked like a tornado". When the commissioner ordered bail to remain at $1 million, Clark shouted that he could easily afford it.

This year's last solar eclipse in Asia and northern Europe on Saturday
The visual of Solar Eclipse will not be visible to many and only a small part of Antartica would be able to watch the eclipse. Eclipse glasses, a pinhole viewer or a telescope with a solar filter are the safest ways to watch the eclipse, NASA says.

Airliner reported hijacked in Washington
Eventually the plane crashed in a remote wooded area of Ketron Island in Puget Sound, leaving behind a fiery pile of debris. A Sea-Tac Airport spokesperson says it was one the airline's employees who conducted the unauthorized takeoff.

Manchester United fans make the same point about Matteo Darmian's struggles
We need to continue and build some good momentum. "It was tough for Harry Maguire , he gave his best and had a good game. I am happy with the performance to make this game in this condition, it's encouraging for the future".