Breaking News
0

Tesla Falls Almost 6% after Musk Says Company Will Stay Public

Stock MarketsAug 27, 2018 04:45AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Tesla was down in premarket trading after Musk said the company will stay public.

Investing.com – Luxury carmaker Tesla (NASDAQ:TSLA) fell almost 6% in pre-market trading after Chief Executive Elon Musk reversed his decision to take the company private.

Musk said in a blog post on Friday that his decision to abandon a proposed $72 billion buyout was motivated by existing Tesla shareholders. Instead, he plans to focus on increasing production of the Model 3 and becoming profitable, he wrote.

“Given the feedback I’ve received, it’s apparent that most of Tesla’s existing shareholders believe we are better off as a public company...I knew the process of going private would be challenging, but it’s clear that it would be even more time-consuming and distracting than initially anticipated. This is a problem because we absolutely must stay focused on ramping (up the) Model 3 and becoming profitable,” Musk said.

Tesla lost a record $718 million in the second quarter, leaving it with $2.78 billion in cash. Tesla has forecast that it would achieve a profit in the third and fourth quarters, but key to that is increasing production of its latest model. The company has struggled to produce and deliver its vehicles on time.

On August 7 Musk tweeted that he had “funding secured” for a buyout at $420 a share, prompting many to wonder whether or not he had the money and if he violated securities laws.

Both Musk and Tesla face investor lawsuits and a U.S. Securities and Exchange Commission investigation into the accuracy of Musk’s tweet.

The company was down 5.52% to $305.00 in premarket trading as of 4:44 AM ET (8:44 GMT).

Tesla Falls Almost 6% after Musk Says Company Will Stay Public
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email