Tesla wants to go private

Tesla wants to go private

Buckle up, it's going to be a wild ride.

TESLA CEO Elon Musk has laid out his rationale for possibly taking the company private, saying the move would free the electric vehicle maker to focus on long-term goals, rather than the quarterly concerns of Wall Street. Such backers begged Musk on Twitter to be allowed to keep their shares, and Musk assured them that they could.

Supporters of Musk and the company view him as a visionary akin to Apple co-founder Steve Jobs, while critics have likened him to a "Wizard of Oz" like figure who has yet to turn a profit.

Soros Fund Management LLC took a $35 million stake in the 2019 Tesla convertible bonds in May of 2018.

The rally after Musk's tweet unleashed fresh pain for short-sellers in Tesla, the most shorted US stock, according to financial technology and analytics firm S3 Partners.

In two minutes, the shares, apparently set to ludicrous speed, had gained 4 percent - to $371. Whether he meant to do that or not, his tweet certainly had that effect: By the time trading halted, Tesla's market value had soared to $61.74 billion, a significant raise from its pre-tweet $58 billion.

When asked on Twitter whether he was serious, Musk replied: "Yes.It saves a lot of headaches".

Germany says US-Europe trade tensions ease, questions remain on soy
Chinese buyers are looking toward South American markets, mainly Brazil, to replace American soy, Barnaby said. Traders yesterday were fairly quick to discount the comments of Europe buying big amounts of US soybeans .

Elon Musk is the world's 31st-richest person and Tesla's largest shareholder. "I'd like to apologize for, you know, being impolite on the prior call", he said.

It would be one of the biggest go-private deals on record with a price tag of about US$72 billion, based on US$420 per share. Hastings pointed out his 200,000 followers [at the time] as being "very public".

Musk and other investors may want to thank Netflix CEO Reed Hastings for these rules, which followed a Facebook post by Hastings in 2013 detailing key subscriber data.

The stock was trading at about $342 when Musk hit the Tweet button. The stock had been up earlier in the day after The Financial Times reported a Saudi Arabian sovereign wealth fund had bought a $2 billion stake in Tesla. Often his erratic behaviour has drawn more attention than his struggles to shift Tesla from a niche luxury auto maker into a mainstream automotive company. "They would continue to have separate ownership and governance structures", Musk wrote. The tweet could be seen as a bid to manipulate the market, former SEC Chairman Harvey Pitt told CNBC.

The tweet "might constitute fraud if any of the facts he disclosed are not true", Pitt said. "Funding secured", Musk tweeted in early afternoon.

At that price, the buyout would cost almost $US72 billion, based on Tesla's outstanding stock as of July 27, but it is unlikely the deal would cost that much because Mr Musk owns a roughly 20 per cent stake in the Palo Alto, California, company.