Business World

Tuesday 18 June 2019

Tesla up as Musk weighs taking it private

Tesla CEO Elon Musk. Photo: AFP/Getty Images
Tesla CEO Elon Musk. Photo: AFP/Getty Images

Martin Jose Valero

Shares in electric carmaker Tesla roared higher in lunchtime trading yesterday after founder Elon Musk said he was considering taking the company private.

Mr Musk tweeted that he had secured funding to take Tesla off the stock market at $420 a share. The company was up 8.2pc on the back of the tweet at around $370 per share, having earlier risen more than 5pc after the 'Financial Times' reported Saudi Arabia's sovereign wealth fund has built a roughly $2bn (€1.73bn) stake in the electric-car maker.

Saudi Arabia's Public Investment Fund built the undisclosed stake of between 3pc and 5pc this year, the FT reported, citing unidentified people with direct knowledge of the matter.

The position is worth between $1.7bn and $2.9bn, the newspaper said.

Last week, the shares soared the most since September 2013 after Mr Musk reiterated that the company will generate cash and profit in the second half of this year and apologised to analysts he scorned on an earnings call three months earlier.

Elsewhere in the US, stocks rose within striking distance of records amid optimism economic growth can continue apace even as the world's two largest economies square off in a trade skirmish.

The S&P 500 Index hit the highest level since January 29 and the Cboe Volatility Index dipped below 11 for the first time since May. Energy and financial shares led gains. Miners lifted the Stoxx Europe 600 Index as commodities advanced. Chinese stocks led a broad rally in Asia, with the Shanghai Composite Index posting its biggest gain in two years on hopes for more policy support for investment.

Elsewhere, crude oil climbed after Saudi Arabian production cuts added to concern about tightening worldwide supplies. (Bloomberg)

Irish Independent

Also in Business