Headlines and Elon Musk cannot stay away for a long time. The Tesla CEO tweeted a few days back that he is considering taking Tesla Inc. private with buyback price of $420 per share. Tesla’s stock went rocket high after this announcement and passed $380 mark the day after.
However, after just one day, the stock has started tumbling back and has now reached about $353 mark, which is way below the high point it touched. The reason for this could be that though Elon Musk stated in a tweet that he has ‘secured’ the investment it needed, he did not clarify where would the money come from and that led to the backward motion of the stock.
Tesla is valued currently at $82 billion. And if Elon’s tweet is to be trusted, with his 20% stack in the company, he must have secured a whopping $70 billion of funds to take Tesla Inc. private. It definitely is a huge amount and so, nobody would trust anyone without any concrete proof.
Elon Musk, known for shaking the world with his crazy ideas, has done it again and this time it’s kind of personal. Let’s see where the future of the company and Elon Musk go from here.