Elon Musk’s tweets about taking Tesla private shake up its share prices

Musk triggered a spike in Tesla's share price shortly before 1 p.m. with a tweet: "Am considering taking Tesla private at $420". "Shareholders could either to sell at 420 or hold shares & go private", he added.

Earlier on Tuesday, a source familiar with the matter said Saudi Arabia's PIF had bought a minority stake of just below 5 percent in Tesla.

The disclosure initially raised questions whether the eccentric Musk was joking, but he then amplified on his plan in a subsequent tweet that said he meant to create a special fund that would allow all current Tesla shareholders to retain a stake in the auto maker if they want.

Unlike publicly listed companies, private firms do not have to share details of their finances and operations.

Although Musk mentioned funding in his initial tweet, a blog post from Tesla did not include any mention of financing.

The company says production is rising, with the goal of 6,000 per week by the end of August. It's not clear Musk has the funding to complete the deal, and he would need a majority of shareholders to agree to the plan.

Tesla doesn't meet the typical profile of a company that can raise tens of billions of dollars of debt. The company had a market capitalization of over $60 billion, as of Tuesday afternoon.

The Wall Street regulator did not immediately respond to a request for comment on Musk's tweet.

Musk has lashed out at critics and investors who have shorted the stock, going so far as to call one prominent critic's employer to silence him, and refusing to take a hard question from a financial analyst in the company's June shareholder meeting. That baseless tweet was quickly deleted and Musk apologized to the diver.

Unsworth told AFP he had not reviewed the tweets in full and had only heard about them. I wanted to let you know my rationale for this, and why I think this is the best path forward.

Musk also denied giving donations to a political action committee dedicated to helping the Republicans maintain control of the house. But Musk isn't one to follow norms.

Asked on Twitter whether Musk would continue to be CEO under such a scenario, he replied there would be "no change".

The Public Investment Fund, or PIF, acquired shares in Tesla over the last few months as part of its wider investment strategy, according to a person familiar with the transaction.

Alexandra Olson reported from NY.

In an earnings call, he berated analysts for asking "boring" questions and sidestepped questions about Tesla's massive capital needs.

Third, the intention is not to merge SpaceX and Tesla.



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