Musk tweets he's working with Goldman Sachs, Silver Lake & others to take Tesla private

Tesla CEO Elon Musk has tweeted news that he’s working with buyout firm Silver Lake and investment bank Goldman Sachs, among a host of other firms, in a bid to take the company private.

» Top New Releases in Books


“I’m excited to work with Silver Lake and Goldman Sachs as financial advisors, plus Wachtell, Lipton, Rosen & Katz and Munger, Tolles & Olson as legal advisors, on the proposal to take Tesla private,” Musk tweeted Monday night.

While Silver Lake has been informally assisting Musk, the firm has not been hired as a financial adviser, an anonymous source told Reuters. Goldman Sachs and the other two law firms could not be reached for comment by the news agency.

Earlier on Monday, Musk revealed that the Saudi Arabian government – which holds a stake of between three and five percent in Tesla – has long been interested in taking the company private.

The news comes less than two weeks after Musk tweeted that he was considering taking Tesla private, if its stock were to hit $ 420. In a blog post, the mercurial CEO explained that he wanted to go private to remove the “major distraction” of fluctuating stock prices, get away from the pressure of quarterly earnings cycles, and remove “perverse incentives for people to try to harm what we’re all trying to achieve.”

Tesla’s stock price jumped ten percent at the news, adding to gains from a few days previously, when the oil-rich Saudi Arabian government’s stake in the electric carmaker was revealed.

However, shares remained below the $ 420 price teased by Musk, and receded in the days afterwards. Several investors accused Musk of manipulating Tesla’s stock price, deliberately tweeting misinformation to hurt short-sellers.

In a lawsuit, they described Musk’s tweet as a “nuclear attack” brought on to “completely decimate” short-sellers – traders who make money by borrowing overpriced shares, selling them, and then repurchasing the shares at a lower price.

Musk has often lashed out at short-sellers, and mocked them over the weekend, joking that he would soon sell “short shorts” as Tesla merchandise.

The New York Times reported that Musk took to Twitter “impulsively” and tweeted in anger at Tesla’s critics, citing sources close to Musk.

Tesla has been publicly traded since 2010, and has seen its share price rise from just under $ 20 then to $ 360 at time of writing. The company is currently valued at just over $ 60 billion, with Musk holding an almost 20 percent stake.

Before its recent rally, Tesla’s share price had been in a downward spiral for much of the summer, as the company struggled to meet production targets for its midrange Model 3 sedan and as Musk’s erratic Twitter behavior worried investors.

On top of his trolling and ongoing feuds with journalists, Musk called a diver involved with the rescue of a Thai children’s soccer team a pedo last month; an outburst that knocked four percent off Tesla’s value.

If you like this story, share it with a friend!

Let’s block ads! (Why?)

Post Author: martin

Avatar
Martin is an enthusiastic programmer, a webdeveloper and a young entrepreneur. He is intereted into computers for a long time. In the age of 10 he has programmed his first website and since then he has been working on web technologies until now. He is the Founder and Editor-in-Chief of BriefNews.eu and PCHealthBoost.info Online Magazines. His colleagues appreciate him as a passionate workhorse, a fan of new technologies, an eternal optimist and a dreamer, but especially the soul of the team for whom he can do anything in the world.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.