Tesla CEO and co-founder Elon Musk said Tuesday that he would like to take the company private, immediately causing intense reactions from investors and a surge in share price. Following the announcement, Tesla shares jumped nearly 11 percent to $379.57.
“Am considering taking Tesla private at $420. Funding secured,” Musk tweeted earlier today.
At $420 a share, Tesla’s market value would be about $71 billion.
In a blog post on the company’s website, Musk shared an email sent to Tesla employees today. Although Musk states that a final decision has yet to be made, he believes that going private would be the “best path forward.”
“I fundamentally believe that we are at our best when everyone is focused on executing, when we can remain focused on our long-term mission, and when there are not perverse incentives for people to try to harm what we’re all trying to achieve,” Musk writes.
He also says that an environment in which Tesla is private would allow for the company “to operate best” while avoiding “wild swings in stock price that can be a major distraction for everyone working at Tesla.”
The email states that the intention is not to merge Tesla and SpaceX, Musk’s private aerospace company. Musk says that that the envisioned structure for a private Tesla would be similar to that of SpaceX, consisting of external shareholders and employee shareholders that have the option to buy or sell every six months.
A shareholder vote will ultimately determine the proposal for going private.
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