Tesla’s privatization: new details emerge
Will electric car company Tesla really go private? If it does, at CEO Elon Musk’s postulated $420 per share, it will be the world’s largest-ever leveraged buyout. At the beginning of the week, we reported on Musk’s announcements (here) – by Tuesday, he’d continued to drip feed more details out through Twitter. As the news continues to evolve, we’ll keep bringing you up to date on it. And, while we don’t have all the info yet, one thing is certain: this is Tesla’s wildest ride yet.
Unpredictable Elon hasn’t dented Tesla’s performance (+12%) over the last month
SOURCE: Yahoo Finance
Tesla divides opinion. And the most opinion-dividing thing about it is CEO Elon Musk. Universally hailed as a genius entrepreneur, investors can’t decide whether that translates into the ability to run a publicly traded company or not. Is he a maverick whose wild ideas will see him outperform rivals, or a man of great potential who is ultimately unsuited to his current role? Whatever you think the answer to that question is, his latest move – announcing the world’s most ambitious ever buyout via the unconventional medium of Twitter – is likely to have confirmed it.
Originally claiming that he had already secured the backing needed to take Tesla off the market, Musk has now offered a few details. According to latest reports, the manager of Saudi Arabia’s Sovereign Wealth Fund has expressed a desire to see Tesla go private “several times” – most recently, two weeks ago.
In explanation of his recent announcements, Musk said: "I left the July 31st meeting (with the Saudi fund) with no question that a deal with the Saudi sovereign fund could be closed, and that it was just a matter of getting the process moving. This is why I referred to 'funding secured' in the August 7th announcement."
He added that talks are ongoing with the fund, and with other investors, and that Goldman and Silver Lakes are acting in an (unofficial) advisory capacity. As more details emerge, we’ll keep you updated.
Dominion holds Tesla in its Global Trends Luxury Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.