The most peculiar of events has suddenly unfolded as Nasdaq stopped trading in Tesla stocks after Elon Musk, its CEO, made a string of puzzling tweets.
“Good morning 😀,” one of them said. Preceded by “am considering taking Tesla private at $420. Funding secured.”
Price quickly begun jumping at that point, but Musk had more to say, just in case anyone thought it was some sort of joke. He said:
“My hope is *all* current investors remain with Tesla even if we’re private. Would create special purpose fund enabling anyone to stay with Tesla. Already do this with Fidelity’s SpaceX investment.”
The daredevil we have previously jokingly nicknamed crazy Musk, had further confirmation that this perhaps is not a joke at all. He says “shareholders could either to sell at 420 or hold shares & go private.”
What exactly is going on here remains a mystery for now, but CNBC says they “contacted a number of Wall Street banks and none of them was aware of any transaction or had committed to funding a leveraged buyout of Tesla, which would be one of the biggest in history.”
BBC says such buy-back would cost $80 billion. Numbers Musk could perhaps afford or finance, but this is the internet. A lot of things could be happening.
His twitter account might have been hacked. Musk might be high. 420, after all, does stand for blaze it. It is also, perhaps coincidentally, a price eth has been hanging to for some time now, with Musk of course infested with eth scam bots for now months.
Yet Tesla is losing money. They reported a record loss in their recent quarterly statement. On the other hand, Saudi Arabia’s sovereign wealth fund has recently bought some 3%-5% of all Tesla stocks.
It could be the case that Musk is perhaps fed up with the public disclosure requirements of public stock companies which can make it difficult to keep trade secrets as secret especially when it comes to things like algorithms or other tech aspects.
Yet what exactly this is, remains to be seen, with Musk continuing to tweet at the time of writing, stating just now:
“Def no forced sales. Hope all shareholders remain. Will be way smoother & less disruptive as a private company. Ends negative propaganda from shorts.” He then added:
“Investor support is confirmed. Only reason why this is not certain is that it’s contingent on a shareholder vote.”