Tesla has been a public company since 2010 and its CEO Elon Musk has now expressed his desire to take the company private. Communicating the desire through his preferred mode of communication, Musk tweeted that he’s considering taking Tesla private at $420 per share. That would not only require approval from the board and the shareholders but also a substantial amount of money. “Funding secured,” Musk added in the tweet.
Soon after tweeting, Musk sent an email to Tesla employees and mentioned that it wasn’t just a weed joke and that he’s seriously considering taking the company private. “The reason for doing this is all about creating the environment for Tesla to operate best,” he wrote.
The details of how this will be processed are slim. An offer would be made to purchase Tesla stock at $420 per share. However, Musk also said that existing shareholders would be given the choice to either sell their shares to remain with Tesla as it goes private.
Musk mentioned in another tweet that he has the funding required to execute this buyout but doesn’t say where it’s going to come from. He also clarified that he won’t be selling his almost 20 percent stake in the company during the buyout and that he would remain CEO after the company goes private.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018