Elon Musk’s Way Forward: Tesla Going Private
#ElonMusk is fed up with Tesla’s continuous up-and-down movement of stock market. Elon Musk believes he has a final solution for same. The solution being becoming private 8 years after going public.
#Tesla doesn’t like the constant trouble created by short sellers (people who bet against the company, Tesla in this case) even though short selers lost around $10 Million, as Tesla stock rose upon.
Though Elon Musk, still bekieves that taking the company private that is aquiring all the stocks of the company.
He believes that he can generate fundings easily. He will start the process once the #stock value reaches $420, which at present is around 370.
The deal is expected to cost around $70 Billion, which is a huge amount. Elon says that the fundings are secured. The point is getting debt would be really difficult for Tesla is in losses. Elon already owns over 20% stake.
Berenberg Bank of Hamburg, Germany has offered to help but they are willing to get the rate at around $500, which is far beyond their $420 they target.
Elon has said the fundings are secured and no Tesla member has agreed to comment on the source of funding. Though if Elon says it must be true.
The reform is pretty necessary as it will insure Tesla is able to keep it’s internal statistics secret, where as being a public company they were supposed to tell the public stock holders.
This will also give the employees more time to work on constructive things rather than to worry about the #WallStreetExchange. Elon had earlier this year said that Tesla will be profitable in Q3, which we are in middle of.
Probably this is the solution, and soon we will call Tesla, Tesla Pvt. Ltd.
Also these funds will help in the $2 billion Tesla #shanghai plant investments for construction, which really neccessary to pump out sufficient cars per week.