Elon Musk’s latest madcap scheme: taking Tesla private
“I WISH we could be private with Tesla.” So said an exasperated and exhausted Elon Musk to Rolling Stone last November. Tesla’s rise has been remarkable. In 15 years it has taken on established carmakers to become the world’s leading manufacturer of electric cars. But the journey has been bumpy. Of late Mr Musk says his company has been in “production hell” trying to increase output of the Model 3, a whizzy mass-market saloon. While on its quest to change the world, Tesla has frequently missed its production targets and has never made an annual profit. Feeling the heat, Mr Musk earlier this year lashed out at share analysts for “bonehead” questions, and has derided the army of short sellers targeting it.
Yet it still came as a shock when, on August 7th, Mr Musk revealed his intention to take Tesla private in an extraordinary tweet. He claimed that he had lined up enough money to buy out the firm at $420 per share, roughly a fifth above the share price at the...