Tesla: shares fall after 'go-private' deal ruled out
(CercleFinance.com) - Tesla shares are down 1.
2% on Monday after Elon Musk finally decided not to take the company private.
After working with Silver Lake, Goldman Sachs and Morgan Stanley on a potential privatisation deal, Musk said it has become "apparent" that most of Tesla's existing shareholders believe that the carmaker is better off remaining a publicly listed company.
"Although the majority of shareholders I spoke to said they would remain with Tesla if we went private, the sentiment, in a nutshell, was "please don't do this," he said.
Earlier this month, the founder and CEO of Tesla announced that he was considering making the company private.
"Going private would have required not just wide support from existing shareholders in order to limit new funding but also required accepting new shareholders with stakes potentially larger than Musk's," analysts at Jefferies commented this morning.
Musk also said that the company has to stay focused on ramping Model 3 and becoming profitable.
Beyond these stated intentions, the "go-private" case seems to have damaged the entrepreneur's credibility more, having further distanced the group from analysts and investors.
"The only tangible results so far from that episode seem to be an SEC investigation, lawsuits and more damage to the standing of management and board," Jefferies laments in a note to clients.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
2% on Monday after Elon Musk finally decided not to take the company private.
After working with Silver Lake, Goldman Sachs and Morgan Stanley on a potential privatisation deal, Musk said it has become "apparent" that most of Tesla's existing shareholders believe that the carmaker is better off remaining a publicly listed company.
"Although the majority of shareholders I spoke to said they would remain with Tesla if we went private, the sentiment, in a nutshell, was "please don't do this," he said.
Earlier this month, the founder and CEO of Tesla announced that he was considering making the company private.
"Going private would have required not just wide support from existing shareholders in order to limit new funding but also required accepting new shareholders with stakes potentially larger than Musk's," analysts at Jefferies commented this morning.
Musk also said that the company has to stay focused on ramping Model 3 and becoming profitable.
Beyond these stated intentions, the "go-private" case seems to have damaged the entrepreneur's credibility more, having further distanced the group from analysts and investors.
"The only tangible results so far from that episode seem to be an SEC investigation, lawsuits and more damage to the standing of management and board," Jefferies laments in a note to clients.
Copyright (c) 2018 CercleFinance.com. All rights reserved.