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Elon Musk plans to withdraw Tesla from stock market

Elon Musk announced in a tweet on Tuesday that he was considering taking Tesla off the stock market.


Devdiscourse News Desk 07 Aug 2018, 08:24 PM United States
  • The valuation of Tesla, of which Musk holds nearly 20 percent of the capital, was USD 58 billion at the closing price on Monday. (Image Credit: Twitter)

Elon Musk announced in a tweet on Tuesday that he was considering taking Tesla off the stock market.

A deal at USD 420 includes a price premium of 22.8 percent above Tesla's closing on Monday, making it one of the biggest cancellations at about USD 72 billion.

I'm considering taking Tesla off the odds at $ 420, funding is assured, says the CEO and founder of the electric car manufacturer.

Asked on Twitter if this solution would spare him headaches, he replied: "Yes".

He said later, always by the same channel, he would be happy if the current shareholders of the group remain with him in case of withdrawal from the stock market. 

I appreciate Tesla's shareholders very much and I will ensure their prosperity in any scenario, he added.

Tesla's press service did not respond to immediate requests for comment.

At USD 420 a share, the deal would represent a 20 percent premium on Monday's closing price, valuing the Silicon Valley automaker at around USD 72 billion (62 billion euros) - one of largest acquisitions followed by a delisting.

The valuation of Tesla, of which Musk holds nearly 20 percent of the capital, was USD 58 billion at the closing price on Monday. On Wall Street, the stock's listing was suspended early in the afternoon, pending a news release, while it was up 7.39 percent to USD 367.25 after a thrust to 371.15.

Shortly before the Musk tweet, the Financial Times reported that the Saudi Public Investment Fund (PIF), overseen by Crown Prince Mohamed bin Salman, had taken a 3-5 percent stake in Tesla.


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