Tuesday Tesla “Two-Fer”

OK, Elon Musk tweeted that he has financing to take Tesla private at $420/share, a fair amount higher than the current price. CNBC has an excellent summary here.

From the CNBC piece:

“Securities lawyers said they were shocked by the tweet. ‘I do not believe this is the appropriate way to suggest going private,’ said Charles Elson, the director of the John L. Weinberg Center for Corporate Governance at the University of Delaware.” (Go Blue Hens!)

“‘If his comments were issued for the purpose of moving the price of the stock, that could be manipulation, it could also be securities fraud,’ former SEC Chairman Harvey Pitt told CNBC on Tuesday. ‘The use of a specific price for a potential going private transaction is highly unprecedented and therefore raises significant questions about what his intent was. So, that would have to be investigated.'”

The Tesla “news” is interesting from both a finance perspective and an automotive perspective. Would taking the company private spur innovation by freeing it from public scrutiny? Musk has publicly criticized stock analysts who question the company’s plan and financial position and as a private company Tesla would not have to hold quarterly analyst calls.

What do you think? Are you a Tesla fan?

 

 

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