Elon Musk is taking Tesla private in offer that seems almost too good to be true

A Tesla charging station. (pixabay, 2018)

South African born-and-raised Tesla boss Elon Musk took to Twitter to announce that he is taking the electric-car firm private.

It means that Tesla, currently worth $63.8 billion, will no longer be under the beady eyes of Wall Street.

At 5:37 pm (South Africa time) Tesla was trading at $374 per share, near its all-time high.

Shareholders will get $420 per share, according to Musk, valuing the business at more than $80 billion.

The Money Show’s Bruce Whitfield interviewed Vestact Asset Management Portfolio Manager Byron Lotter.

Lotter discussed five reasons why Musk is taking Tesla private:

  • So he does not have to deal with irritating short-sellers. He hates that people out there bet against his company that he believes is trying to save the world.

  • He doesn't have to deal with analysts and their short-term focused questions.

  • The business requires patience and a long-term view. The public market can be impatient. If he goes private, he can focus on the long term.

  • He won't be so heavily scrutinised on short-term production targets.

  • If he has found big private investors; they will be more strategically aligned with his vision than the public market.

The biggest drawback of going private is more limited access to capital, says Lotter, as Musk often went to the market and issued shares to get quick access to large sums of money.

For more detail; listen to the interview in the audio below (and/or scroll down for quotes from it.)

He seems to take real offence to all these shorts in the market. Tesla is the most shorted company in history. 25% of its market cap is shorted.

Byron Lotter, Vestact Asset Management

It was trading at $28 per share in 2011…

Byron Lotter, Vestact Asset Management

Tencent has 5% of the business… We know that the Chinese are putting their hands up to become the Electric Vehicle leaders of the world…

Byron Lotter, Vestact Asset Management

Any shareholder that gets out at $420 has done very well.

Byron Lotter, Vestact Asset Management

Enjoy The Money Show, but miss it sometimes?

Get the best bits emailed to you daily, right after it ends:

Subscribe to our mailing list

* indicates required

Recommended

by NEWSROOM AI
Read More
Who is Elon Musk really? This biographer got closer to him than anyone ever

Who is Elon Musk really? This biographer got closer to him than anyone ever

Truth is stranger, more spectacular and drama-filled than fiction. Bruce Whitfield interviews Musk biographer Ashlee Vance.

Elon Musk ('Richard Branson on steroids') is an unmatched marketing mastermind

Elon Musk ('Richard Branson on steroids') is an unmatched marketing mastermind

Ad guru Andy Rice discusses the latest advertising “heroes” and “zeroes”. Elon Musk is a boss. “Debt Rescue”, no so much…

Tesla proves that Elon Musk is a marketing mastermind

Tesla proves that Elon Musk is a marketing mastermind

Tesla loses breath-taking amounts of money every nanosecond, yet the brand is gold. Bruce Whitfield interviews ad guru Andy Rice.

Elon Musk’s SpaceX starts advertising anywhere-on-Earth in less than an hour

Elon Musk’s SpaceX starts advertising anywhere-on-Earth in less than an hour

Ad guru Jonathan Cherry loves SpaceX’s new advertisement for a service that only exists in the head of Elon Musk.

Meet Errol Musk - father of Elon, the most innovative entrepreneur of our age

Meet Errol Musk - father of Elon, the most innovative entrepreneur of our age

Elon Musk, as you’d expect, hails from an exceptional family. Bruce Whitfield interviews his Capetonian father.

Popular articles
Questions raised over line of questioning at Omotoso trial

Questions raised over line of questioning at Omotoso trial

James Grant says he thinks that it may be time to re-look how the law works in terms of dealing with rape victims.

[WATCH] A golden buzzer for South African trio on talent show

[WATCH] A golden buzzer for South African trio on talent show

Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone viral'.

'The EFF seems to be trying to find scapegoats'

'The EFF seems to be trying to find scapegoats'

Deputy Editor at Financial Mail, Sikhonathi Mantshantsha, seems to be finding excuses as to why its leaders are in trouble.

I worked for that money! - Robert Madzonga (VBS shareholder Vele Investments)

I worked for that money! - Robert Madzonga (VBS shareholder Vele Investments)

The Money Show’s Bruce Whitfield interviews Madzonga, who claims innocence and that Chairperson Tshifhiwa Matodzi lied to him.

Pick n Pay sells most groceries in 5 years

Pick n Pay sells most groceries in 5 years

Recession? What recession? The Money Show’s Bruce Whitfield interviews Pick n Pay CEO, Richard Brasher.

Support for #CherlyZondi as she wraps up her testimony against Tim Omotoso

Support for #CherlyZondi as she wraps up her testimony against Tim Omotoso

Wits Institute For Social Economic Research research associate Lisa Vetten looks at how witnesses cope on the witness stand.

Sanral considers new measures to 'aggressively' tackle Gauteng e-toll defaulters

Sanral considers new measures to 'aggressively' tackle Gauteng e-toll defaulters

Discussions between Sanral, and the Ministers of Finance and Transport have apparently reached an advanced stage.

'Racism is a daily thing in Hartbeespoort'

'Racism is a daily thing in Hartbeespoort'

Hartbeespoort Community Development Initiative spokesperson Russel Baloyi talks about racism in the community.