Tesla shares fall 5% on Wall St. skepticism, SEC probe reports

Investor's Corner					Tesla board to formally review Elon Musk’s plan to go private TSLA reacts after hours

The reference to the company's stock is particularly relevant because Tesla shares immediately skyrocketed in the wake of Musk's tweet.

Following Elon Musk's recent tweets in which he claimed that he has the funding to take Tesla private and was seriously considering the move if Tesla's stock price reaches $420, analysts have been left confused and unsure of Musk's plans.

Tesla Inc's board of directors is seeking more information from CEO Elon Musk about how his plan to take the US electric auto maker private for $72 billion will be financed, according to people familiar with the matter. Short sellers borrow company stock and then resell the shares in the open market in a bet that they will be able to replace them at a much lower price in the near future to repay their debt. But Musk had also suggested he wanted "all" existing investors to stay onboard, using a novel process that would essentially limit those stockholders' say in management affairs, and even when they could sell off their holdings.

The entrepreneur owns about 20% of Tesla, meaning there is a potential conflict of interest should he head talks to take the automaker private. A few hours after the tweet went up, Tesla published an internal email that was sent to Tesla employees which outlined the benefits of taking the company private.

Will Sports Direct save Chichester’s House of Fraser?
He has held an 11 per cent stake in the business since 2014, and also owns close to 30 per cent of Debenhams, its main rival. On Oxford Street in London, the two are next door to each other.


On Thursday the company fell more than 5 percent to $352.45, wiping out all the gains since the tweet.

No details about funding have been disclosed though. That has some experts raising an eyebrow.

This bombshell was announced right after the stock market on tesla shares was closed following the twitter disclosure of Elon Musk of taking Tesla company private. In a classic go-private transaction, a small group of investors would buy Tesla's shares and become Tesla's sole owners. "Otherwise, why wouldn't you just wait until you're definitely doing a deal to say something?"

The reported deliberations would be consistent with what six directors said in a statement a day earlier: that they would take "appropriate next steps" to evaluate their chief executive's idea. This was reported by Elon Musk in his twitter handle.

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Bloomberg on Thursday afternoon conformed the paper's report, and said that the federal securities regulator had been looking into Tesla's public statements before the tweet. That investigations is now "intensifying", it said.

Some observers have questioned whether Musk's original tweet was meant to punish the short-sellers who've been the bane of his existence.

Is this Tesla deal a way to raise the value of Aramco? "It actually makes us less efficient to be a public company".

Tesla, which was founded in 2003, launched its initial public offering (IPO) on NASDAQ on June 29, 2010, and the IPO raised $226 million for the company. Tesla could seek SEC approval to make a tender offer exclusively to its small shareholders while retaining larger institutional owners, John Coffee, a professor of law at Columbia University, said in an interview. One of those that could be involved is Saudi Arabia's sovereign-wealth fund which allegedly took a stake in Tesla last but has no plans to expand it according to the Wall Street Journal.

Kerala floods : Heavy rains, landslides claim 20 lives
Union minister Alphons Kannamthanam said he discussed the flood situation in Kerala with Home Minister Rajnath Singh this morning. Vijayan has cancelled all his public functions till 12 August, and will monitor the situation from the state capital.


Tesla stock has declined sharply in light of the uncertainty, dropping to $354 midday Thursday.

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