Elon Musk says taking Tesla private is 'best path,' shares jump - which is the best electric toothbrush to buy

SAN FRANCISCO (Reuters)-
Chief executive Elon Musk said Tuesday he was considering privatizing Tesla Inc. Electric car manufacturers have experienced a period of rapid growth in the face of financial tightening, stepping out of the hustle and bustle of Wall Street.
"I'm thinking about buying Tesla for $420.
"Funds are guaranteed," Musk said on Twitter . "
$420 per share, the total transaction will reach $72 billion.
More than an hour later, Musk posted on the company's blog in a letter to Tesla employees, explaining that privatization would be "the best way forward ". ” Such a move -
No final decision was made-
Will let Tesla "operate in the best condition, free from interference and short-lived impact --
"Think as much as possible," he wrote . ".
Tesla shares closed up 11% at $379.
57, just below all of themtime high.
When asked if Musk would continue to serve as CEO in this situation, he replied "there will be no change.
Musk has been under great pressure this year to turn the money around. losing, debt-
A more profitable company
The prospect is that Tesla's valuation is higher than that of General Motors.
The company is still trying to get rid of what Musk's home factory in Fremont, California calls "production hell," where a series of manufacturing challenges have delayed the ramp --
The production of the company's new Model 3 sedan has grown, and the company's profitability depends on the sedan.
This Silicon Valley company is facingor-
In eight of its breaks
As a one-year history of listed companies, competition among European automakers will intensify with Audi and Jaguar's new electric vehicles, and more competitors will follow suit next year.
At the same time, Tesla has announced plans to set up a factory in Shanghai and Europe, China, but there are few details and the funds are unknown.
With Musk and the company facing these challenges, privatization is a way to avoid close attention in the public market.
Musk has publicly quarreled with regulators, critics, short sellers and journalists, and some analysts believe Musk will welcome a reduction in transparency.
Gene Munster of Loup Ventures said: "Musk doesn't want to run a listed company because Tesla's ambitious mission makes it" difficult to meet investors' quarterly expectations. ".
Musk owns nearly 20% of the company.
In his letter to the staff, he said that he did not seek to expand his ownership.
The price of $420 per share will be nearly 23% higher than Tesla's closing price on Monday, making the company's market value about $58 billion.
Musk suggested in the letter that shareholders could choose to sell their shares for $420 per share, or choose the remaining investors of private Tesla.
He said he hopes all investors will stay if the company is privatized.
He did not mention the source of funds for the transaction in the tweet or letter, nor did he discuss the source of funds for the plan.
Like any other investor, Musk is responsible for the securities law, and several securities lawyers have told Reuters that he may face a lawsuit if he proves at the time of his tweet that he has no secure financing.
The move could ease Tesla's debt burden. It drove $2.
3 billion of convertible debt exceeds the level at which investors exchange their profits for shares;
If this happens, Tesla will not have to pay the debt in cash. (GRAPHIC-
Market value for Tesla, Ford and GM: tmsnrt. rs/2n4mFjh)BIGGEST GO-
If Musk succeeds in acquiring Tesla, it will be the largest leveraged acquisition ever, surpassing the $45 billion transaction record of Texas power's Energy Future Holdings, which went bankrupt in 2014.
Raising the debt and equity needed for such exchanges will be a challenge.
Many of the main Wall Street bankers contacted by Reuters said anonymously that they did not know Musk's plan before the tweet, and some expressed doubts that the company may receive financing given Tesla's negative cash flow.
"For me, anyone will fund the acquisition of such a debt, which is unfathomable --
There are so many losses, and bin Laden, which has huge Capital expenditure needs in the future, "said Mark Spiegel, portfolio manager of hedge fund Stanphyl Capital Partners, who held a short-term position in Tesla, and bluntly criticized Musk on Twitter.
Musk's most obvious equity partner will be sovereign wealth funds such as Saudi Arabia's Public Investment Fund (PIF)
Bankers say major technology investment funds such as SoftBank Group Corp. 's Vision Fund.
China Tencent Holdings, which held 5% of Tesla last year, is another possible partner.
These sources of foreign capital will be reviewed by the US Foreign Investment Commission (CFIUS)
Pay close attention to the transactions of potential national security risks.
Earlier on Tuesday, a person familiar with the matter said Saudi Arabia's PIF bought a minority stake in Tesla, which is just under 5%. The U. S.
The Securities and Exchange Commission declined to comment on Musk's Twitter. However, the agency allows companies to use social media such as Twitter to post critical information, and if investors are told which social media will be used, it is in compliance with its fair disclosure rules.
In a 2013-second document, Tesla reminded investors that they should follow Musk's Twitter feed for "more information" about the company ".
Under Investor Communications, Musk's Twitter account was not mentioned on the company's investor relations page, although Tesla's Twitter feed was included.
Musk wrote in a letter to employees, "as the shortest stock in the history of the stock market, listing means that there are a large number of people who have the motivation to attack the company.
"Short selling is a trading scenario that occurs from time to time in stocks that are heavily short sold, when bearish traders are forced to buy stocks to avoid significant losses --
Ultimately only push up the stock.
According to data from financial analyst S3 Partners, Tuesday's short-term interest in Tesla was close to $13 billion. (GRAPHIC-
Tesla's share price jumped 10% to a record high: tmsnrt. rs/2MbzJin)