Tesla board confirms Elon Musk's buyout plans

08 August, 2018, 22:48 | Author: Corey Lynch
  • Tesla going private Elon Musk

Earlier today, Elon Musk did what he does best and set the internet ablaze - this time, based on a tweet about potentially taking Tesla private again.

Musk has downplayed the power of the tweets he launches at all hours to his 22 milion Twitter followers: "My tweets are literally what I'm thinking at the moment, not carefully crafted corporate bs, which is really just banal propaganda", he said in June.

Tesla Inc.'s board confirmed it knew last week about Elon Musk's proposal to take the electric-car maker private, adding credence to the idea that this was more than a spur-of-the-moment whim from the notoriously impulsive billionaire. In short, he wants to minimize distractions and shift the focus from short-term to long-term.

"First, a final decision has not yet been made, but the reason for doing this is all about creating the environment for Tesla to operate best".

Follow Tesla's stock price in real-time here. The surprise announcement was sandwiched between other provocative tweets and, among other things, promptly caused a temporary halt in the trading of Tesla shares on Wall Street while also causing some to doubt if Musk was being serious. That last part is important, because Tesla's going to need a lot of it.

The company is still working its way out of what Musk called "production hell" at its home factory in Fremont, California, where a series of manufacturing challenges delayed the ramp-up of production of its new Model 3 sedan, on which the company's profitability rests. "Finally, as the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company".

Musk took Tesla shareholders and the stock market by surprise on Tuesday by announcing on Twitter he was considering taking the loss-making electric car-maker private at $420 U.S. a share.




If the company went private, employees and shareholders would be given an opportunity to sell or buy their stock approximately every six months.

The email also squashes two potential rumors.

In a release, board members Brad Buss, Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Linda Johnson Rice, and James Murdoch said Musk opened the discussion last week.

The move to take the company public would remove Musk, who himself has a 20 percent stake, from the public arena - and contentious criticism.

Any buy-out would require a shareholder vote.

But his nine-word tweet during the middle of trading Tuesday - "Am considering taking Tesla private at $420".

Recommended:

  • China's restrained new tariff 'rational' - USA

    China's restrained new tariff 'rational' - USA

    Answering a reporter's question about what was specifically said on trade, Wang said: "We did not speak in such details". The question is what other tools the two countries may use, once they have no more goods upon which to impose tariffs.
    'The Bachelorette' Finale: Who Did Becca Kufrin Choose?

    'The Bachelorette' Finale: Who Did Becca Kufrin Choose?

    A preview for the finale obtained by Entertainment Tonight has even shown Becca crying to the cameras, "I feel awful ". She also admitted that she had seen him as "the one" for so long, but that they would be better fitted apart.
    Trump attacks LeBron James and Don Lemon over CNN interview

    Trump attacks LeBron James and Don Lemon over CNN interview

    Yahoo News White House correspondent Hunter Walker points out that before James started criticizing Trump, Trump used to be a fan. He sits down with @donlemon at the opening of his new elementary school for at-risk children in his hometown of Akron, Ohio .
  • Russia Names Steven Seagal Humanitarian Envoy to U.S.

    Russia Names Steven Seagal Humanitarian Envoy to U.S.

    Action-movie star Steven Seagal has played a former Central Intelligence Agency agent, a hit man and a killer of criminals. Actor Steven Seagal is seen here speaking to CNN on January 25, 2013.
    Newcastle confirm swap deal with West Brom for Salomón Rondón

    Newcastle confirm swap deal with West Brom for Salomón Rondón

    Switzerland worldwide defender Fabian Schar has the makings of a £3m bargain while Ki Sung-Yeung looks an astute free transfer.
    Cleveland Browns: 3 impacts Corey Coleman trade has on team

    Cleveland Browns: 3 impacts Corey Coleman trade has on team

    We've all seen the return that Cleveland received from their trade with the Buffalo Bills , yet it's still too shocking. Coleman played in nine games last season for the Browns, making eight starts; he missed seven games with a hand injury.
  • Blend of novices, veterans to fly on first private U.S.  spaceships

    Blend of novices, veterans to fly on first private U.S. spaceships

    He retired from NASA after commanding the final shuttle mission in 2011, and eventually joined Boeing to help develop Starliner. He is a colonel in the Air Force, where he was a flight test engineer before being selected as a NASA astronaut in 2009.
    Luka Modric future talks due TOMORROW over Inter interest

    Luka Modric future talks due TOMORROW over Inter interest

    Modric then went into the World Cup in buoyant move, and he managed to lead his Croatian side to the World Cup final. Modric has two years remaining on the contract extension he signed in October 2016.
    Largest wildfire in California history still growing

    Largest wildfire in California history still growing

    Keith Gilless is a UC Berkeley professor of forest economics and chairman of the California Board of Forestry and Fire Protection. An inmate firefighter pauses during a firing operation as the Carr fire continues to burn in Redding, California on 27 July 2018.
  • Meeting with Russia to gather information totally legal, Trump says

    Meeting with Russia to gather information totally legal, Trump says

    Trump has publicly expressed a desire to be interviewed, but his lawyers have repeatedly objected to the investigators' proposals. In one tweet, he declared the media the "Enemy of the People" and accused outlets of sowing division and distrust.
    Donald Trump Insults LeBron James & Don Lemon In Latest Tweet

    Donald Trump Insults LeBron James & Don Lemon In Latest Tweet

    Trump claimed previous year he disinvited from the White House, wrote "Keep doing you" with a link to James' interview. In September, James called Trump a "bum" for uninviting the NBA-champion Golden State Warriors to the White House.
    Alisson to debut for Liverpool against Napoli

    Alisson to debut for Liverpool against Napoli

    Whereas Firmino is fain to drop deep and leave space for Mane and Salah, Sturridge spends far longer facing the opposition goal. In Liverpool's penultimate preseason friendly, Alisson will face a side from the league that he just came from in Napoli .


Popular

The Academy Adds Best Popular Film Oscar Category
Now the Oscars will take a page from the Tony Awards playbook by announcing some of the categories during commercial breaks. Essentially, with these changes, the Oscars are looking to become more like the MTV Movie Awards, and that's a damn shame.

Saudi FM says 'nothing to mediate' in dispute with Canada
Saudi neighbours Bahrain and the United Arab Emirates have voiced solidarity with Riyadh, according to media reports . The European Commission said it's seeking clarification about the arrest of activists in Saudi Arabia.

Trump vows to impose tariffs on more Chinese goods
The United States will begin collecting 25 percent tariffs on another $16 billion in Chinese goods on August 23, the U.S. Trade Representative's office said on Tuesday as it published a final tariff list targeting 279 imported product lines .

Rick Gates, testifying in Manafort trial, admits to affair, London apartment
The case has little to do with either man's work for the Trump campaign, which has only tangentially figured in the trial. That's important to prosecutors, who need to not only prove Manafort skimped on paying millions of dollars in taxes.

Dead fetus found on commercial plane at LaGuardia Airport
A cleaning crew found a dead fetus in the bathroom of an American Airlines plane early Tuesday morning, sources tell PIX11. The Port Authority deferred questions to the Queens DA's Office, which said it was looking into the matter.

Crude palm oil futures gain 0.27%
US West Texas Intermediate (WTI) crude futures were at $68.70 a barrel at 8.47am GMT, down 26c from their last settlement. Even with last week's rise, overall USA crude inventories are below the 5-year average of around 420 million barrels.

Yemen rebels announce temporary Red Sea ceasefire
The Saudi-led coalition denied responsibility for the attack, saying it did not carry out any operations in the area that day. He called for "an immediate ceasefire" and urged Yemen's warring parties to join United Nations peace efforts.

Meet Maurizio Sarri’s backroom staff at Chelsea
The Italian said that was one of the reasons his team were soundly beaten 2-0 by Manchester City in the Community Shield . I played against City last season, played them in their best moment of the season.

Trump "needs to put a pin in that", says panelist
Special Counsel Robert Mueller is investigating U.S. intelligence findings that Russians conspired to sway the election in Mr Trump's favour.

National Archives may not finish reviewing Kavanaugh documents before end of October
Chris Coons of DE said at a hearing Wednesday that the Senate should receive even more documents than what Grassley had requested. But Democrats have criticized that process and the lawyer leading it - former Bush lawyer Bill Burck - as political.