Tesla confirms intention to go private, sending stock up 11%

posted by The INSIDER - 

Tesla Inc., which went from a scrappy Silicon Valley electric-car maker to a $63 billion company eight years after going public, could go private, although a final decision has not yet been made, Chief Executive Elon Musk said Tuesday.

The goal would be “creating the environment for Tesla to operate best,” Musk said in the an email to employees that was posted on the company’s website.

“As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders,” he wrote. “Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term.”

Musk also took a swipe at short-sellers, saying that “being public means that there are large numbers of people who have the incentive to attack the company.

The news came after Musk earlier Tuesday announced on Twitter he was “considering” taking the Silicon Valley car maker private at $420 a share. Shares were halted about one hour later for pending news, and resumed trading up about 11% at 3.45 p.m. Eastern.

Read the full story: Marketwatch.com

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