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Musk explains why he thinks taking Tesla private is 'best path forward'

Musk explains why he thinks taking Tesla private is 'best path forward'

Musk said he is considering taking the electric vehicle maker private.

He later deleted that tweet and apologized for that exchange, but at least one analyst suggested Musk needed to get off Twitter to restore investor confidence in the company. It would be one of the biggest go-private deals on record with a price tag of about $72 billion, based on $420 per share.

Musk has lashed out at critics and investors who have shorted the stock, going so far as to call one prominent critic's employer to silence him, and refusing to take a hard question from a financial analyst in the company's June shareholder meeting.

"Basically, I'm trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, and where there is as little change for all of our investors, including all of our employees, as possible", Musk wrote.

Musk also previously used his Twitter account to joke that Tesla was going bankrupt in an April Fool's Day tweet and his stability was called into question last month after he called a British diver who helped rescue children from a Thailand cave a pedophile.

In July, Model 3 - that comes with a base price tag of $35,000 - not only had the top market share position in its segment in the U.S., but it also outsold all other mid-sized premium sedans combined - accounting for 52 per cent of the segment overall.

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But shouldn't some presidential meetings remain private? Trump has since tried to walk back at least some of his comments. It led to him reading out a clarification in which he said he had misspoken, mixing up the word "would" with "wouldn't" .


When asked on Twitter whether he was serious, Musk replied: "Yes.It saves a lot of headaches". They were later halted for news pending.

His US$12b Tesla stake would presumably be rolled into the private enterprise. Intentions to buy out public shareholders usually need to be filed with the Securities and Exchange Commission, or SEC.

"This proposal to go private would ultimately be finalized through a vote of our shareholders", Musk explained.

Musk has previously discussed possibly going private as a means to realize long-term growth and accomplish a goal that some Tesla acolytes embrace with near-messianic passion.

Musk - the company's top investor, with more than 20 percent of its shares - has long waged war against the short sellers betting the company's value will plummet. Representatives for the Saudi fund weren't immediately available for comment on the investment, which the Financial Times first reported earlier Tuesday.

However, he concedes Musk has good reason to take Tesla off the public markets, and he's established precedent through SpaceX and The Boring Company. (TSLA.O) private in a radical step that would ease pressure on the money-losing automaker.


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