Elon Musk explained why plans to buy Tesla stock

ECONOMY

NEW YORK, August 8. /Basereporter.com/. The decision to purchase the shares of Tesla and turning it into a closed joint-stock company is pending. This was announced on Tuesday, Elon Musk’s address to the employees of the company on its website.

He explained previously posted them on Twitter write about the possibility of redemption of shares of Tesla at $420 per share.

“I have previously announced that considering the possibility of turning Tesla into a closed joint stock company and redemption of shares at a price of $420, – said Musk. – I want to explain [it] and why I think the best option for moving forward. First, the final decision is still pending, but this should be done to create the conditions in which Tesla could operate in the best way. Being a joint stock company, we are suffering the consequences of significant fluctuations of the shares that affects everyone who works in Tesla and is a shareholder”.

Tesla as a joint stock company must now provide quarterly financial reports that, according to the Mask “turns into strong pressure on the company in favor of the adoption of decisions which can be right for one block, but are not necessarily best in the long term.” He also pointed to “a large number of those who have incentives to act with attacks on the company.”

Turning Tesla into a closed joint stock company, said Musk, “will create a choice or those who have a stake, will remain with the company as the investors or they can sell the shares at the rate of $420, that is, 20% premium”. Musk did not rule out that after Tesla enters a period of “more of the projected growth is likely to happen again to turn it into a stock company”.

The financial position of Tesla

To closing new York stock exchange, the stock price of Tesla increased to $379,57, that is, by 10.99% or $37,58. Earlier the Financial Times reported that sovereign Fund Saudi Arabia has accumulated its share in Tesla in the amount of about $2 billion.

Last week the company released a second quarter report in which the losses amounted to $717,5 mln vs $336,4 million for the same period last year. The company’s revenues increased to nearly $4 billion from $2.79 billion a year earlier. During the reporting period of the current year, Tesla delivered to customers 40 740 electric cars of all models compared to slightly over 22 thousand for the second quarter of 2017.

The company was founded in 2003. Originally it was called Tesla Motors, however, at the beginning of this year became known as just Teslа. Its headquarters is in Palo Alto (California). First, the company specialized in the production of electric vehicles, but later became involved in the development of solar and other energy-storage systems.

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