After riling the stock market Tuesday with tweets that Tesla might go private at $420 a share — causing a halt in trading — CEO Elon Musk reportedly declared there’s still no final decision.
But in his blog post to employees, he noted all the reasons for going down that road, which would make the electric vehicle maker’s market value around $71 billion, according to CNBC.
"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," Musk said in the post.
“As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders," he added.
He also groused that being public means being subject to public scrutiny — and puts "enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term."
And he cited Tesla's status as the most shorted publicly traded company.
In subsequent tweets, Musk said he hoped investors would remain with Tesla if it were private and expressed his appreciation for its shareholders.
“Only reason why this is not certain is that it’s contingent on a shareholder vote,” he tweeted before trading was halted shortly after 2 p.m. At the time, they were trading at $367.25 a share — and when trading resumed about 3:45 p.m., continued the climb to over $381 apiece, TheStreet reported.
CNBC reported it couldn’t confirm with any banks about a truncation or a commitment to funding a leveraged buyout of Tesla that’d be one of the biggest in history.
According to the business news outlet, investors have been concerned about Tesla spending and if it’d need to raise more funds to support ambition plans that include a a semi-truck, a crossover SUV called the Model Y, more factories around the world.
TheStreet reported that earlier Tuesday Saudi Arabia's sovereign wealth fund had built an undisclosed stake in Tesla, with the Financial Times estimating the stake at between 3 percent and 5 percent.
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