Musk Says He May Take Tesla Private, Shares Roar

Musk Says He May Take Tesla Private, Shares Roar

Musk Says He May Take Tesla Private, Shares Roar

"It's not easy to take a company that's losing money private", Galloway said. The stock had been worth about $342 a share before Musk's tweet.

Galloway said Musk likely wants to take the company private because he's anticipating third- and fourth-quarter losses, and is exhausted of dealing with irate investors and the general demands of being a public company.

Tesla now has a market value around $60 billion, which would make its take-private price tag about $80 billion, Galloway said. Tesla has always been one of the most-shorted stocks on Wall Street, but so far, the company has not seen the share-price meltdown that shorts expected.

In a Twitter direct message to Ars Technica, Musk confirmed he was serious about the proposal.

"I believe Tesla considers Tweets as public disclosure". If Musk were to make good on his tweet, it is unclear from where he could secure funding to buy out Tesla's shareholders. "Already do this with Fidelity's SpaceX investment".

Analysts took Musk at his word.

A short squeeze is a trading scenario that occurs from time to time in heavily shorted stocks, when bearish traders are forced to buy shares to avoid big losses - something that ends up pushing the stock only higher.

"Details, structure, participants and how the valuation has been determined remain to be seen". Earlier in the day, the Financial Times reported that Saudi Arabia was taking a $2 billion stake in the electric automaker.

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