TSLA: Knock knock, the SEC is here
Tesla CEO Elon Musk tweeted earlier today, "Am considering taking Tesla private at $420. Funding secured."
His tweet sent TSLA stock up 7% before the SEC froze trading. With 169,794,000 shares outstanding, it would mean a valuation of $71.3B.
Later, Musk doubled-down on the statement and tweeted, "Investor support is confirmed. Only reason why this is not certain is that it’s contingent on a shareholder vote."
I had my doubts, but it would seem that Elon Musk really does have a feasible plan to take TSLA private again. He has a history of scorning and spurning short sellers, and taking the company private would help to reduce the constant public scrutiny he faces from investors. Whether the plan materializes or not remains to be seen. Until then, TSLA will probably continue trading with high volatility as investors speculate the likelihood of this transition from public to private.
Disclosure: I/we have no positions in any stocks mentioned, and have no plans to initiate a long position in TSLA over the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.