Posted by cageymaru 4:00 PM (CDT)
Wednesday August 08, 2018
In a letter to employees, Tesla CEO Elon Musk expressed his desire to take Tesla private to avoid the scrutiny of short sellers. He set a target price of $420/share which is a 20% premium on the company's post second quarter earnings and values the company at $71.7 billion. All he needs is a shareholder vote as he says that the funding is already secured.
Finally, this has nothing to do with accumulating control for myself. I own about 20% of the company now, and I don't envision that being substantially different after any deal is completed. Basically, I'm trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, and where there is as little change for all of our investors, including all of our employees, as possible.