Doubts grow over Elon Musk’s master plan to take Tesla private

Danny Moloshok  Reuters

The brief statement by six of the nine board directors said that the discussions about taking the company private had also "addressed the funding for this to occur". But after the markets opened Wednesday morning, Tesla's stock edged downward about 1 percent, to $375.

Musk has 22.3 million followers on Twitter, and Tesla's share price was already rising after the Financial Times reported that Saudi Arabia's sovereign wealth fund had taken a $2bn stake in the company. Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long term.

Other board members mentioned in the statement included Robyn Denholm, Ira Ehrenpreis, Antonio Gracias and Linda Johnson Rice. The board, they said, had met "several times" over the last week and was actively working to "evaluate" the proposal.

"Given the haphazard process of disclosure last afternoon, our initial impression was that Elon Musk sprung his plan of going private upon the public without consulting Tesla's board of directors or major shareholders", Bernstein analysts said in a note titled "Going private?"

He set a target stock price of $420 a share and said he had investors lined up to purchase the company at that price.

BWS: Subtropical Storm 'Not Threat To Bermuda'
Debby poses no threat to land, as the storm is located about 1,150 miles west-northwest of the Azores. Meanwhile, the Pacific remains active with three-named storms.

Rogue planet with mystical aurora discovered drifting beyond our solar system
New analysis has proved that it is in fact a proper planet with an extraordinarily powerful magnetic field. Journal Reference: "The Strongest Magnetic Fields on the Coolest Brown Dwarfs", by M.

Gates admits he cheated on wife at Manafort trial
The defense in the trial of Paul Manafort went on the attack Tuesday against the government's star witness , Rick Gates . Gates is cooperating in hopes of a lighter prison sentence. "In Cyprus, they were documented as loans".

Some Wall Street analysts were skeptical of Musk's ability to gather the huge financial backing to complete such a deal, given that Tesla loses money, has $10.9 billion of debt and its bonds are rated junk by credit ratings agencies. Korus said he would need more details from Musk to judge whether a buyout offer would be practical and at what price it would be attractive.

His message followed a report that a Saudi investment fund had taken a almost 5% stake in Tesla.

If the content of Musk's tweet was not true, lawyers argue, it could expose Tesla's mercurial chief executive officer and the company to regulatory action and private lawsuits.

"Just because" Musk wants it at $420 "doesn't mean that there aren't other people who might be willing to come in with another transaction that would be more beneficial to shareholders", Pitt said. If the statement regarding having secured the funding for the move later proves unachievable, then Musk could be in hot water with regulators over the statements that he first made on Twitter.

Related news:

Hot News

isis-killer-beheading-video-story-top How India, China and European Union weigh in on US' sanctions on Iran
Aug 08, 2018 - 20:59
Spot Brent crude oil futures were at $73.88 per barrel at 0241 GMT on Tuesday, up 13 cents, or 0.2 percent, from their last close. USA sanctions on Iran's energy sector are set to be re-imposed after a 180-day "wind-down period" ending on November 4.

isis-killer-beheading-video-story-top Hurricane Hector: Category 4 storm heads toward Hawaii, forecast, path, track today
Aug 08, 2018 - 19:00
On Friday, state officials warned residents and visitors to take precautions in case Hector gets closer to the island chain. Hurricane Hector gained in strength overnight as it continues its march westward across the Central Pacific.

isis-killer-beheading-video-story-top New York Congressman Chris Collins Arrested on Insider-Trading Charges
Aug 08, 2018 - 18:36
The insider trading crimes concern Innate Immunotherapeutics, an Australian biotech firm in which both Collins men were major shareholders.

isis-killer-beheading-video-story-top At least 91 dead after quake hits Indonesia’s Lombok island
Aug 08, 2018 - 17:26
An Indonesian man examines the remains of houses, after a 6.4 magnitude quake struck, in Lombok on 29 July, 2018. The epicentre of the quake was in northern Lombok, a more residential, less developed part of the island.

isis-killer-beheading-video-story-top YouTube removes Alex Jones' channel for violating its community guidelines
Aug 08, 2018 - 16:00
In the same thread, Dorsey said Twitter in the past has "been bad at explaining our decisions" but that they're "fixing that". In addition, Facebook and Spotify have deleted more of Jones' content, after removing some content last week.

isis-killer-beheading-video-story-top Samsung Galaxy Note 9 cases already on sale
Aug 08, 2018 - 14:10
While the size is only slightly different from Galaxy Note 8, the phone will also come with a tweak to its design. The previous leaks said that Samsung Galaxy Note 9 will cost around $1,000 but a new leak suggests otherwise.

isis-killer-beheading-video-story-top Boris Johnson burka: Tories order MP to apologise over 'bank robber jibe'
Aug 08, 2018 - 12:27
Mr Johnson's father, Stanley, came to his defence, telling ITV1's Good Morning Britain: "I think we are just picking holes here". Johnson's comments followed Denmark introducing a ban on burkas in public places.

isis-killer-beheading-video-story-top China unveils additional retaliatory tariffs on $60bn of USA goods
Aug 08, 2018 - 11:26
Trump portrays the tariffs as a tax on foreigners, but the reality is that tariffs are taxes on US companies and consumers. He said his administration would continue to employ tariffs if other nations were unwilling to come to the table on trade.

isis-killer-beheading-video-story-top Angelina Jolie accuses Brad Pitt of evading child support
Aug 08, 2018 - 10:58
Previously, Pitt had had no contact with his children. 'He's not OK with his kids being away for months, ' they added. Jolie's net worth is slightly smaller, estimated at $160 million.

isis-killer-beheading-video-story-top Paul Pogba angered by José Mourinho's view of World Cup exploits
Aug 08, 2018 - 09:26
World Cup-winning Pogba is back at Carrington after he was allowed an extended break following the tournament in Russian Federation .

isis-killer-beheading-video-story-top OH 12th Congressional District Special Election Results Show Close Race
Aug 08, 2018 - 06:25
The district, split between suburban Columbus, Ohio, and rural areas, has been represented by a Republican since the early 1980s. The Ohio election was the marquee contest on a day of voting that featured primaries in four other states.

isis-killer-beheading-video-story-top Astros' Lance McCullers placed on DL with elbow discomfort
Aug 08, 2018 - 06:24
Because of the ongoing legal proceedings, very little can be said about the incident itself or the case involving Roberto. The Astros acquired Osuna on Monday in exchange for three pitchers and will eventually turn to him in the ninth inning.

isis-killer-beheading-video-story-top Jurgen Klopp praises Anfield reception for Loris Karius
Aug 08, 2018 - 06:23
Salah's driving run across the box teed the striker up for a shot which found the top corner via a deflection. Liverpool kick off their Premier League season against West Ham at Anfield on Sunday.

isis-killer-beheading-video-story-top Musk explains why he thinks taking Tesla private is 'best path forward'
Aug 08, 2018 - 05:01
If Musk can't prove the allegedly secured funding at $420 per share, he may be accused of market manipulation or market fraud. If Musk decides against going private, Gordon said his credibility could take another hit, though one he could weather.

isis-killer-beheading-video-story-top Ruby Rose Cast as Batwoman for The CW
Aug 08, 2018 - 04:48
In a city desperate for a saviour, Kate must overcome her own demons before embracing the call to be Gotham's symbol of hope. She first appeared as a love interest for Bruce Wayne in the 1950's after censorship reached an all-time high.