Elon Musk: I think I should withdraw Tesla from the stock market
Tesla boss Elon Musk, who produces electric vehicles, has argued that the company is to spend private property and not to stop trading in the stock market and that it is the best way for the company to move forward.
Musk said Tesla would cease trading in the stock market and now the company will get rid of the pressure to make short-term decisions to satisfy investors.
Elon Musk made this announcement from an unusual step by Twitter, not through the market regulatory and supervisory agencies.
Musk stated that the investors who support the shareholders should also give their support.
Elon Musk stressed that it would offer to pay investors 414 dollar per share, which is more than the current value, to collect company shares.
Musk also said that he found the financial resources needed to recover the company’s shares, but he did not elaborate on that.
However, Musk also said that “the final decision has not yet been made”.
Tesla’s shares closed at 380 dollar per share with an increase of 11 percent.
Tesla stocks were closed in Nasdaq after the rally, but investors who invested in Tesla have fallen by about 1.3 billion dollar with a Musk tweet.
Elon Musk criticized investors who took a short position against Tesla, a long-time supporter, and said that this stance was an obstacle to focusing on the company’s real business.
The transactions on Tesla stocks were suspended until Musk’s Twitter messages were followed by a more formal statement.
The SEC, the market inspecting and regulating institution of the US, allows companies to make such announcements from social media channels like Facebook or Twitter, as long as investors are informed about which social media platform to use.
However, it is not known yet whether Musk is observing this rule.
Musk had previously mentioned the difficulties of becoming a publicly traded company traded on the stock exchange.
However, since Musk’s social media is a formally untimely history of using Twitter, the messages on Twitter first created a confusion.
Musk made a joke saying on 1 April that Tesla went bankrupt on Twitter.
The company later issued a more detailed statement by publishing a message to Musk’s employees.
Musk, who owns almost 20 percent of the company, said the move would protect the company by lowering stock price prices and achieving quarterly financial targets.
“I am trying to get a result that Tesla can operate at best, from distractions and from short-term thinking,” Musk said.
Musk’s explanations rekindled the debate about the future of the company.
Tesla is spending a lot of money on the production of the new model, Model 3.
Experts say that the company that disclosed record losses in the last quarter needs to find money to survive.
But Musk said there was no such plan and argued that the company would make a profit in the second half of the year if there were no unexpected developments.
The Financial Times reported that the Saudi Arabian state fund bought a 3 to 5 percent stake in the company for 1.9 billion dollar.