Tesla postponed to October: quarterly accounts are in the red, but investor confidence holds. Despite losses of 717,5 million dollars, investments amounted to 2,5 billion compared to 3,4 last year, the electric giant's revenues in the second quarter increased by +44% for a total of 4 billion of dollars. To surprise investors were the corporate coffers which recorded 2,2 billion, disavowing the estimates of analysts who gave them just over one billion.
Tesla closed yesterday's Wall Street session at 10%, which was very positive and had a great impact on investors: the Financial Times announced that Saudi Arabia's sovereign fund has acquired a stake of between 3 and 5% of the value of society.
Following the news, Tesla CEO Elon Musk informed on his Twitter account that he is considering delisting the company from the Wall Street Stock Exchange, but no decision has yet been signed.
Am considering taking Tesla private at $ 420. Funding secured.
- Elon Musk (@elonmusk) August 7th, 2018
Subsequently Musk sent an official note to his employees in which he explained the reasons for a possible farewell to Wall Street: “Being public also subjects us to the quarterly profit cycle, which exerts enormous pressure on Tesla to make decisions that could be right for a given quarter, but not necessarily right for the long term. That's not to say it will make sense for Tesla to remain private even in the long run. Going forward, when Tesla enters a phase of slower and more predictable growth, it will probably make sense to return to the markets. First, I would like to structure this so that all shareholders have a choice."
On whether employees could remain shareholders in the company, Musk continued: “They can remain investors in a private Tesla or they can sell at $420 a share, which is a 20% premium to the stock price following our request to Q2 earnings (which was already up 16%). My hope is that all the shareholders will stay, but if they prefer to sell, that would give them a nice premium."
“This proposal to make it private should be done with a vote of our shareholders. If the process ends the way I expect, a private Tesla would ultimately be a huge opportunity for all of us. Either way, the future is very bright and we will continue to fight to achieve our mission,” Musk concludes.
