For the past few years, one of the most followed companies in the world of finance and the auto industry has been Tesla. While electric cars have been around for decades, Tesla has been able to develop a wide line of vehicles that combine electric technology with style and performance. Because of this, Tesla vehicles have been very popular with people that are able to afford more expensive cars.
While Tesla has been a very popular company for those that are looking for a great new car, it has also been a big focus for those that are on Wall Street. Ever since unveiling their most recent line of cars a few years ago, the stock of Tesla has continued to increase dramatically. This has provided the company with a lot of operating cash, which is necessary as Tesla continues to look to grow and develop.
Going public has provided Tesla with a lot of access to capital, but also comes with some problems. Today, Tesla has continued to struggle with concerns from investors that they company is still losing money and has not always been able to meet production schedules. Others are concerned that CEO Elon Musk is way too focused on other ventures outside of Tesla. These concerns have continued to lead to some volatility in the stock, even though it is continuing to go up over time.
At this point, it appears that the Tesla stock could be taken off of the market entirely. Earlier this week, Musk sent out an ominous Tweet that discussed that he is planning on taking Tesla private. He also stated that he already has the investors lined up and that some key employees have already been notified. News of this announcement came as a big surprise to investors and the stock of Tesla went up more than 10% during trading on that day (https://money.cnn.com/2018/08/07/news/companies/elon-musk-tesla-private/index.html).
The news of the stock going private is a big surprise to a lot of people. Most financial experts believe that the company needs to stabilize more before it decides to go private again. Furthermore, Tesla appeared to do a lot of work last quarter in order to beat earnings estimates. Because of this, the price of the stock went up a lot over the past week, which will only make it more expensive for investors to buy out from the general public. At this point, a more formal play to buy back all of the stock has not been unveiled.