Elon Musk’s latest: A plan to take Tesla private? – The Wall Street Journal
DUBLIN – With Tesla's cash-flow woes mounting up and its share price valuation looking rich, now seems like an interesting time for Elon Musk to tweet that he plans to take the company private. Musk has pranked Twitter before, with a now-infamous series of bankruptcy tweets in April this year, so any rational person would take a random tweet from Musk with a grain of salt. However, Tesla later confirmed the plan in a memo and taking Tesla private would make sense. The company needs cash desperately and a private equity buyout or a debt-based buyout by Musk could be the answer to some prayers. The company might also benefit from some time away from the quarterly pressure of a US listing, not to mention some respite from the relentless assault by shorts. However, while Musk claims that he has the funding lined up, it's not immediately clear who would want to pay billions for an automaker that still struggles to turn a profit. – Felicity Duncan
By Mike Colias and Miriam Gottfried
(The Wall Street Journal) Tesla Inc. Chief Executive Elon Musk jolted financial markets on Tuesday with a surprise proposal to take the electric-car maker private in what would be the biggest buyout in history.
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