"Am considering taking Tesla private at $420". Some might argue that it was improper, and perhaps even illegal, for Musk to make such an announcement on social media because people who follow Elon Musk on Twitter had an unfair advantage over investors who don't. Funding secured." But later the same day, he said "a final decision has not yet been made, "in an e-mail to the company's employees". The stock is far below the $420 price at which Musk said shareholders would be bought out. First, we expect vigorous debate on the fairness of the proposed $420 price as we believe many shareholders are seeking a liquid security that has significant upside to the indicated take-private price. But he might have moved a little too fast for the tastes of federal regulators. "I own about 20 percent of the company now, and I don't envision that being substantially different after any deal is completed", Musk added.
He said that would allow Tesla to "operate at its best, free from as much distraction and short-term thinking as possible".
The issue of share accumulation by outsiders emerged only recently as reports that Saudi Arabia's public investment fund had built up a stake from 3 to 5 percent after its offers of purchase of new shares in Tesla were spurned by the company.
That would mark the biggest such transaction in history, worth more than $70 billion US.
The stock fell more than 2% and closed at $370.34.
Plane crash in Staples parking lot kills five near Los Angeles
The plane is registered to the San Francisco-based real estate company Category III, according to an FAA database. The Orange County Fire Department said the plane's engine cut out before it could make it to the airport.
Canadian businessman and "Shark Tank" television personality Kevin O'Leary opined on the tweet that sent capital markets spinning yesterday when Tesla co-founder and CEO Elon Musk announced the idea of taking the Palo Alto, California-based company private.
If the company went private, employees and shareholders would be given an opportunity to sell or buy their stock approximately every six months.
The Tesla board responded to the proposal earlier Wednesday morning, indicating that it is evaluating things.
The whole thing isn't yet set in stone because it must be put to a shareholder vote.
As could be expected, this caused Tesla's shares to leap off the charts, closing the day up 11 percent at $379.57 a piece.
The Journal reported that the securities regulator is looking into the legitimacy of Musk's comments, and why he made the disclosure on Twitter instead of through a formal filing.