Lawyers said every word of Musk's tweets will be examined, including why he used words like "considering", to determine whether he might have tried to inflate the stock price to blow out short-selling investors, a longtime foe.
"First, a final decision has not yet been made, but the reason for doing this is all about creating the environment for Tesla to operate best". MarketWatch reported that information like the fact that the CEO is considering taking a public company private is generally supposed to be announced to investors and the public by way of official earnings reports and press releases.
Tesla stock opened at $369.09 on Wednesday, sliding almost 3 percent from its Tuesday closing price of $379.57. He now owns 20 percent of the company, so more than $60 billion is needed to buy the business from public shareholders.
Several securities attorneys told Reuters that Musk could face investor lawsuits if it was proven he did not have secure financing at the time of his tweet.
Gates Describes Manafort Orders While Defense Hammers 'Secret Life'
In another heated exchange, Downing tried to press Gates into explicitly saying that he had embezzled money from Manafort. In addition, he testified, he did not submit the required forms at Manafort's direction.
"Finally, this has nothing to do with accumulating control for myself". Of course, going private probably won't require anywhere near that much money, based on how Musk wants it all to go down.
Musk has promised a sustained net profit starting in the third quarter. Among these issues, short-sellers have especially posed a continuous problem for Tesla, and it's no surprise Musk would like to put an end to the roller coaster that their actions can cause, with him highlighting the view that Tesla is one of most shorted companies on Wall Street.
China's Tencent Holdings Ltd, which took a 5-percent stake in Tesla a year ago, could also be a possible partner. "How could Tesla possibly fund such a large transaction?" But going private could also complicate Tesla's effort to build a mainstream electric vehicle by removing the easy access to capital the Wall Street darling has enjoyed.
Elon Musk is betting that a privately held Tesla Inc. would free his company of distracting scrutiny. It was pretty quick and seemed to handle well enough.
"This proposal to go private would ultimately be finalized through a vote of our shareholders", Musk said in explaining the potential move. "Either way, the future is very bright, and we'll keep fighting to achieve our mission".
Tesla's shares were down 2.1 percent at $371.70 (288 pounds) on Wednesday after closing up 11 percent on Tuesday. Many initially thought it was Elon Musk's attempt at a bad joke about marijuana, because "420" has always been associated with pot.