Tesla: could be delisted at around 420 dollars
(CercleFinance.com) - The boss and founder of Tesla, Elon Musk yesterday said that he plans to delist the Tesla stock at a price of 420 dollars, which would mean an instant premium of about 20% at the time he made this announcement.
Yesterday the stock closed up 11% at about 380 dollars, meaning a market capitalisation of about 64 billion dollars.
Mr Musk explained that this project is due to major changes in the Tesla stock price, which could be a major distraction for all the company's employees. It also due to pressure stemming from the publication of quarterly accounts and "short-termism" that may result. Finally, Musk added that the Tesla share is the most shorted stock in the US, which means that investors seem to be massively betting on its decline.
A final decision has not yet been taken. Elon Musk added that the eventual delisting of the Tesla share would only be transitory, with a potential reintroduction on the stockmarket on the cards once the company is more mature.
Mr Musk would prefer that Tesla's current shareholders remain so, which may still be the case once the company is delisted. Note that he does not intend to increase his stake in the company - currently around 20% - on this operation.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Yesterday the stock closed up 11% at about 380 dollars, meaning a market capitalisation of about 64 billion dollars.
Mr Musk explained that this project is due to major changes in the Tesla stock price, which could be a major distraction for all the company's employees. It also due to pressure stemming from the publication of quarterly accounts and "short-termism" that may result. Finally, Musk added that the Tesla share is the most shorted stock in the US, which means that investors seem to be massively betting on its decline.
A final decision has not yet been taken. Elon Musk added that the eventual delisting of the Tesla share would only be transitory, with a potential reintroduction on the stockmarket on the cards once the company is more mature.
Mr Musk would prefer that Tesla's current shareholders remain so, which may still be the case once the company is delisted. Note that he does not intend to increase his stake in the company - currently around 20% - on this operation.
Copyright (c) 2018 CercleFinance.com. All rights reserved.