Posts
Tesla’s stock is down 5 percent this morning after news emerged the U.S. Department of Justice had launched a criminal investigation into CEO Elon Musk’s Aug. 7 tweets about taking the company private. The criminal probe is in addition to the previously reported Securities and Exchange Commission investigation into the electric car company.
We’ve reached out to Tesla for comment.
Musk has since retracted those statements, or tweets rather, after speaking with shareholders and investigating the process, realizing the best path forward for the company was to remain private. Here’s an excerpt from his Tesla blog post at the time:
“Given the feedback I’ve received, it’s apparent that most of Tesla’s existing shareholders believe we are better off as a public company. Additionally, a number of institutional shareholders have explained that they have internal compliance issues that limit how much they can invest in a private company. There is also no proven path for most retail investors to own shares if we were private. 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.'”
Musk wrote at the time that he was considering buying back the company for $82 billion (at a share price of $420 plus debt), and already has the funding to do so. He later disclosed the funding would come from a Saudi Arabian sovereign wealth fund.
from www.tech-life.in
No comments:
Post a Comment