Founder of Tesla Elon Musk stated about plans to “make the company private” and is ready to buy back the stocks in free circulation, at USD 420 per stock, ET reports, he wrote in Twitter.
According to Musk, he already found the funding for buying back stocks.
In the letter to company’s employees, Musk wrote that he considers this option to be the best for promoting.
Also, according to Musk, the company faces a huge pressure due to quarterly income statements, and the public stock offering gives lots of people the opportunity to attack the company.
As Bloomberg reports, at the declared value and taking into account the company’s debt, the total value of Tesla is about 82 billion dollars.
Taking into account Musk’s share, equal to 20%, the buyout of remaining stocks will cost him about 66 billion. In case of sale, it will be the largest funded buyback of shares in the history.
It should be reminded that Tesla ended the second quarter with record losses, but its proceeds exceeded the forecasts.
