Tesla model 3
Mena Massoud to sue Tesla
The actor star believed his brand new Model 3 crashed into a tree because the vehicle had manufacturing and design defects that he wasn't aware of when he...
Tesla has said its focus this quarter is on supplying cars to customers waiting in China and Europe.
The move is meant to usher Tesla past months of turbulence following Musk’s 7 August tweet that he was considering taking the company private and had secured funding.
Tesla did not immediately respond to a request for more details about the acquisition.
Musk took to Twitter on Monday, saying he deleted his Tesla titles last week to see what would happen, without giving further details
The first tunnel, under Hawthorne in the Los Angeles area, is almost done and will open on 10 December, Musk said.
The decision comes as Tesla is under pressure to turn a profit and days after Chief Executive Officer Elon Musk stepped down as chairman to settle allegations by regulators that he misled investors.
Neither Musk nor Tesla admitted or denied the SEC’s findings as part of the settlement. Neither responded to requests for comment.
The stock dropped 2.8% to $280.74, the lowest level since late May, following a 4.2% decline on Tuesday after Mercedes introduced its first fully electric car in Stockholm.
A go-private deal at $420 a share announced by Musk in a 7 August tweet would have wiped out short bets against Tesla and hidden the company’s financials from the public eye.
The board announced the move in Tesla’s first filing with regulators since Musk tweeted a week ago that he was considering taking the company private.
Musk, who is still looking for funding for the plan, also said law firms Wachtell, Lipton, Rosen & Katz and Munger, Tolles & Olson would be legal advisers on the plan.
Musk said in a tweet on Tuesday that he had secured financing for the deal, but he did not publicly provide further details.
In a letter to Tesla employees published more than an hour later on the company’s blog, Musk explained that going private would be “the best path forward.”
The car is seen as crucial to Tesla’s profitability at a time when it is battling to reverse production shortfalls.
NHTSA said in a statement it was “gathering information on the tragic crash in Fort Lauderdale, Florida to understand all of the facts.
Tesla has already sought this month to play down widespread Wall Street speculation that it would need to return to capital markets this year to raise more funds.
Last week, Barclays analyst Brian Johnson warned investors to be wary of a brief “burst rate” of Model 3 production that was not sustainable.
The delay sent shares of the Palo Alto, California-based company down 2% in after-market trading.