Elon Musk thinking about taking Tesla private

Tinuku - Tesla CEO Elon Musk is thinking about taking the company private, said in a Tweet. More specifically may buy back the company for US$71.3 billion at a share price of $420 and already has the funding to do so.

Musk reached out to Tesla, given that this could just be Musk trolling all of us, and will update this story if I hear back. Following the original tweet, Musk said he doesn’t have a controlling vote now and wouldn’t expect any shareholder to have one if we go private.

Tinuku Elon Musk thinking about taking Tesla private

Musk’s hope that “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.”

Musk, who said would stay on as CEO, also seems willing to have a provision for retail investors, who have held Tesla shares prior to Dec. 31, 2016, to convert their shares into private shares. Musk, in response said “super appreciative of Tesla shareholders” and “will ensure their prosperity in any scenario.”

Musk’s original tweet came shortly after news broke that a Saudi Arabian sovereign wealth fund bought a US$2 billion stake in Tesla. Tesla’s stock rallied following Musk’s tweets, jumping as high as US$371.

Whether this is appropriate disclosure under SEC rules is unclear, but it’s worth noting that it does allow companies to make certain announcements in specific circumstances on social media. The caveat is that investors must know to watch those channels for those announcements.