Ilon Musk said the company could be sold to private investors. They were the Saudi Fund
Despite the fact that the photo was taken in 2015, it is still relevant today - Musk likes to make unexpected statements
on August 7, the head of Tesla Inc. announced that he was thinking about the possibility of selling his company to private investors. He told about it in his Twitter, saying that the value of the shares could reach $ 420 apiece. At the same time, the businessman expressed hope that all current Tesla investors will remain with the company, and the relationship will not cease to be trustworthy.
After this announcement, electric vehicle manufacturer’s stock almost immediatelyincreased by 8%, and then - by another 3%. It is worth noting that at the time of Mask’s announcement, the company's share price was $ 365 per unit, which is much lower than the announced $ 420. Taking into account Tesla's debts, its total value in case of a stock price increase would be $ 82 billion.
Then, on August 7, the well-known publication Financial Times announced the purchase of a package of shares of a transport company in the amount of 3-5% by the State Investment Fund of Saudi Arabia.
By the way, Mask had previously expressed his desire to delist Tesla with the sale of the company to private investors. In particular, he spoke about this to the journalists of Rolling Stone magazine in November 2017. He said that in the hands of private investors, the company could become more efficient. One of the positive nuances of the sale is the reduction of external pressure on Tesla Inc, which is now permanently under close supervision by regulators and market participants.
A few days after Mask sent tweets, the shareholders sued him. They considered that the sale would be a clear violation of the federal law on securities, as well as the law on the protection of investors' rights.
One of the lawsuits was filed by trader Kalman Isaac, who believes that Mask simply does not have the means to buy back the securities of his company. So, this entire information company is nothing more than a scam and the desire to capitalize on the growth of its own shares. That is - a direct violation of several laws. US law provides that such messages must be credible. Moreover, they must be registered in official documents and submitted to regulatory authorities.
In addition to registering messages, Mask needs to provide evidence that he has enough funds to buy back shares in order to convert Tesla into a private company. If this is not done, the regulator may regard the statement as a manipulation with the quotations of securities. Moreover, checking the statements of a businessman began the Federal Commission on Securities and Exchange.
A few days after the announcement, the situation cleared up - as it turned out, negotiations with the company’s management on its purchase are conducted by the Public Investment Fund (PIF) sovereign fund of Saudi Arabia. It is this organization that can participate in the process of withdrawing Tesla from the stock exchange. According to the fund, Riyadh plans to protect itself from future risks in the oil market by entering Tesla Inc. True, the decision on a deal with Tesla has not yet been made, and the more so, the amount of investment has not been determined.
The situation with the company is uncertain. On the one hand, she reported a record loss of $ 717 million in early August. The balance of funds in the accounts of Tesla Inc amounted to $ 2.2 billion. The increase in the level of expenses was caused by an increase in the production volume of the new Tesla 3 electric vehicle model, which is designed for the mass market.
Nevertheless, the company managed to reach the promised level of production of machines at 5000 per week. Earlier, Musk said that overcoming this threshold means the beginning of a profitable company. This means satisfied investors and the flow of funds to the company's accounts. According to Tesla management, the second half of 2018 should be profitable for the first time in history.