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Possible Privatization of Tesla And Its Consequences On The Shareholders

Still the shareholders are not aware of the possible consequences will caused from expected Privatization of Tesla.

With only few words in the last speech by Elon Musk CEO of Tesla glowed a huge misperception for the company stock and its shareholders. The Musk is going to privatized Tesla for 420 dollars. The Musk 9 words twitter has disturbed the investors. The sentence was quite straight forward.

So it arose some questions:

  1. What was the meaning of funding secure?
  2. How much privatization is considered by Musk?
  3. When the privatization is expected?

Electric car maker is confusing the investor about the future. However, more questions can be raised than answering the current questions.

What shareholders need to do with their company stock list as the small statement by Musk created confusion.


The following points need to keep in mind by the investors:

  1. Avoid from Assumptions

In any sale or purchase scenario nothing is formalized, so for investors it is better to remain sticky to their stocks with confidence in future. Before the deal is finalized, the shareholders can avoid any fluctuations in the stock market by holding the shares. The shareholder needs to focus on the underlying business beside what is going to be happen.

  1. Focus on Reality

The buying and selling of company stocks depends upon the company financial condition, management honesty and quality, core business and several other factors that affect the stock and business.

For privatization other factor can also be mull. The tesla current price for 1 share is 347 dollars but company wants to privatize it at 420 dollars so the difference is 73 dollars that is profit for the investor when it will privatized. Also the KSA is going to fund the Tesla that will help for its privatization

The last meeting among the fund directors also not raised any questions against the Saudi fund so it means it will not stop the process.

The investors or shareholders have open email of Musk to company employees, intention for Privatization. The post from Musk on the Company site what has occurred? A specific committee constitute by Tesla to look after and check the value of any offer for privatization. Another source is reported preliminary probing by SEC about twitter comment by Musk that is actual presentation of reality in Tesla.

All in all, still there is no official news about Tesla Privatization.

  1. Keep Updated From the Latest Information

Keep eyes on every news, press releases or management meetings. If the privatization is happens in the near future then it is expected you will receive soon 420 dollars for each share.

Anyhow the picture is still not clear still the rumors are prevailing in the stock market about Tesla. The analysts after observing the all matters expecting a electric car maker Privatization in the near future.

Every shareholders need to keep himself at the middle ground, no need to buy more company stocks and also not to sell just hold on and wait for the situation to clear. As the company has not disclosing the information may be the things going under process.