Regulator examines Musk's tweets on taking Tesla private

Regulator examines Musk's tweets on taking Tesla private

The report came the day after Musk said he was considering taking Tesla private and that funding had been secured, but did not offer any specifics about the unprecedented move.

Shares of Tesla skyrocketed Tuesday when the plan was announced, but sank about 1.5% in trading Wednesday.

Tesla's board on earlier on Wednesday said it was evaluating taking the company private, which would be the biggest leveraged buyout of all time.

There is no evidence this was Musk's intention with his remarks on Tuesday. Among these issues, short-sellers have especially posed a continuous problem for Tesla, and it's no surprise Musk would like to put an end to the roller coaster that their actions can cause, with him highlighting the view that Tesla is one of most shorted companies on Wall Street.

Musk didn't expand on what he meant by the tweet on Twitter but he did send out an internal memo to employees to explain the rationale behind the tweet highlighting three main reasons behind his intentions.

In his typically controversial fashion, Tesla (NASDAQ:TSLA) CEO Elon Musk dropped a bombshell on his Twitter account, which he has used as a platform for pranks, vitriol and now for a proposal to pull off one of the biggest buyouts in U.S. history.

Tesla shares sank slightly in trading Wednesday as some Wall Street firms expressed skepticism about CEO Elon Musk's push to take the electric vehicle maker private.

Article image SpaceX uses newest Falcon 9 booster for second time
When was the Falcon 9 deployed? The launch was used to deliver the Merah Putih satellite to a Geostationary Transfer Orbit. He said the Block 5's first stage booster is created to fly 10 times "with no scheduled refurbishment".

Two of the potential stumbling blocks to Musk's plan include the stock price premium not being enough to get the existing shareholders on board to support the sale and coming up short on the announced funding to complete the transition.

Buying Tesla in its entirety would cost US$72b, based on the company's outstanding stock as of July 27.

SoftBank is now not interested in a deal for Tesla after earlier this year taking a stake in General Motors Co's self-driving unit, Cruise, Reuters reported earlier.

China's Tencent Holdings Ltd, which took a 5 percent stake in Tesla previous year, could also be a possible partner.

'Basically, I'm trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, ' Musk wrote.

Former SEC chair Harvey Pitt told CNBC that while the U.S. stock market regulator permits executives of publicly listed companies to use social media to make statements about their businesses, Musk's tweet was still "highly unprecedented". He believes the company will be in a better position to succeed if it's privately held.

Names excluded from the board statement were Musk; his brother, Kimbal Musk; and Steve Jurvetson, a venture capitalist and early Tesla backer who's been on leave since past year.

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