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Elon Musk and Tesla Propose a BIG CHANGE

6166 fb8959d98d66f18c63beaf0ed39d35fe - Elon Musk and Tesla Propose a BIG CHANGE

Elon Musk proposed on Tuesday to potentially take Tesla, as a company, private. He promises investors of the company who have been loyal from the start that they will maintain their investment in the company, even if it removed from stock markets in the event it is taken private.

 

Elon Musk’s says to employees in an open letter “First, I would like to structure this so that all shareholders have a choice. Either they can stay investors in a private Tesla or they can be bought out at $420 per share, which is a 20% premium over the stock price following our Q2 earnings call (which had already increased by 16%). My hope is for all shareholders to remain, but if they prefer to be bought out, then this would enable that to happen at a nice premium.”

 

Many shareholders who have stayed with Musk and Tesla through many different business ventures like flamethrowers and surfboards seem to have little interest in selling their shares even at this premium price.
The only problem seen by many financial experts is the holding of shares from small self-managed owners in the stock.  Due to their small stature and amount held in the business they might not be able to reach accreditation.

 

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