And there would be money for the deal.
In August 2018, on his way to the airport, Elon Musk published his infamous tweet about his intentions to buy back Tesla shares from the market at a price of $420 a share, accompanied by a comment about the presence of financial guarantees for this transaction. In the future, it never took place, and the billionaire had not only to temporarily say goodbye to the post of chairman of the board of directors of Tesla, but also to $ 20 million, which were paid in the form of a fine. Now there is a new trial, which was initiated by investors affected by Musk’s actions, and it will last until at least early February, according to Barron’s.
Image Source: Getty Images
This week, new excuses for this story came from the lips of Elon Musk. First, at the end of the summer of 2018, he was sure that Arab investors would indeed provide him with the necessary funds to buy back Tesla shares. He wanted to privatize the company at that moment in order to protect its shares from speculators. The price of $420 apiece was set at the rate of a premium of 20% relative to the current rate, and did not have any hidden connotations, which some sources later tried to find.
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Since the bet on Arab investors in this deal did not pay off, Elon Musk had a backup plan, as he admitted in court. In case of emergency, the billionaire was ready to sell part of the shares of the private aerospace company SpaceX he founded. In fact, he similarly financed the deal to buy Twitter last October by selling part of Tesla’s own shares in advance. Musk admitted that he would have difficulty parting with SpaceX shares, but if they needed to be sold, he would not hesitate.