dearJulius.com Write For Us

Tesla halts trading as Musk considers taking company private

SHARE:

Elon Musk said he hopes all investors will stick with Tesla should they vote to take it private. File Photo by Stephen Shaver/UPI

By Danielle Haynes, UPI

Tesla halted trading Tuesday after CEO Elon Musk tweeted he was considering privatizing the all-electric automotive company.

Musk said he secured funding to take the company private. Shareholders could either stay invested in the private company or sell shares for $420, which put the value of the company at around $71 billion. A majority of shareholders would have to approve the plan in order for the company to go private.

Trading stopped around 2 p.m. EDT at $367 a share.

"Am considering taking Tesla private at $420. Funding secured," Musk tweeted shortly before then.

[post_ads]"My hope is *all* current investors remain with Tesla even if we're private. Would create special purpose fund enabling anyone to stay with Tesla. Already do this with Fidelity's SpaceX investment," he added.

Musk said Tesla wouldn't force investors to sell their shares, adding that privatizing the company would be less disruptive and end "negative propaganda" from investors who hold a short position.

Tesla launched its initial public offering in June 2010 at $17 per share, valuing the company at $226 million. On Wednesday, though, the company said it lost $743 million on sales of $4 billion in the second quarter of 2018, which ended June 30.

The company reached a milestone in late June by producing 5,000 Tesla Model 3 vehicles in a week and said it was able to maintain that pace of production "multiple times" in July.

Despite production running several months behind schedule, Tesla is seeking to produce 6,000 vehicles per week and 10,000 per week by the end of the year.

Last month, Tesla announced plans to open new production factory in China, which the company hopes will eventually produce 500,000 vehicles a year.

COMMENTS



Note: If you think this story need more information or correction, feel free to comment below your opinion and reaction.
Like & Follow to Stay Updated ...

Name

Alabama,1,Arizona,1,Barack,1,California,3,Colorado,1,Connecticut,1,Crime,531,Florida,1,Franc,1,Hawaii,8,Illinois,1,Los Angeles,2,Massachusetts,3,Mississippi,1,New York,128,U.S.,1558,Washington,4,
ltr
item
U.S. - U.S. Daily News: Tesla halts trading as Musk considers taking company private
Tesla halts trading as Musk considers taking company private
https://3.bp.blogspot.com/-3qrlvRmvBj0/W2p6EbI5u5I/AAAAAAAA34Y/Zn3VbO2TjtIxSgtt3tOB3ahd-UXlHrnbQCEwYBhgL/s1600/3.jpg
https://3.bp.blogspot.com/-3qrlvRmvBj0/W2p6EbI5u5I/AAAAAAAA34Y/Zn3VbO2TjtIxSgtt3tOB3ahd-UXlHrnbQCEwYBhgL/s72-c/3.jpg
U.S. - U.S. Daily News
https://us.dailynews.us.com/2018/08/tesla-halts-trading-as-musk-considers.html
https://us.dailynews.us.com/
https://us.dailynews.us.com/
https://us.dailynews.us.com/2018/08/tesla-halts-trading-as-musk-considers.html
true
3263844984480124152
UTF-8
Loaded All Posts Not found any posts VIEW ALL Read More Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share. STEP 2: Click the link you shared to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy