Elon Musk revealed a bit more details about the plan to buy Tesla from the stock exchange. Changing the company's status from a public company to a private company is to be realized without using a loan, and the promised 420 dollars. No investor will be entitled to the campaign - it results from the explanations published on the Tesla blog.
In another letter to investors, Musk explains that the information given by the media on the necessity of spending 70 billion dollars to buy Tesla from shareholders is exaggerated. Announces the same that declared in the post on Twitter 420 dollars for the share will not apply to all - only those shareholders who do not decide to support Tesla will receive such a valuation of their assets.
The Tesla CEO intends to finance the operation not with the use of credit, but capital from the largest shareholders who, as he claims, "have always supported Tesla". Among them, there is a Saudi property fund. The managing director of the fund allegedly stated in an interview with Musk that the fund should already be in talks from July this year. involved in the repurchase of the company from the stock exchange. So far, no decisions have been made on such cooperation, but further meetings have been scheduled.
Musk announces that before voting at all, he wants to present to all shareholders a specific Tesla ownership change plan - it is too early to present it. It is also worth explaining that the majority of the capital necessary for the company's transition to private activities will be obtained from private equity rather than credit: "I do not think that tearing Tesla with drastically increased debt was wise" - Musk writes in an official message. In addition, he explains that the alleged $ 70 billion of the funds needed to finance the company's buy-out from the stock exchange are exaggerated: " The rate of $ 420 / share will only be reasonable for those shareholders who will not want to stay with our company after switching to private business. At the moment I estimate that about 2/3 of shares will go to a private investment" - he adds.
Let's now take a look at the Tesla technical picture at the H4 time frame. The market has broken through the long-term trend line, but got capped around the level of $385. Since then the price has retraced about 50% and is trading at the level of $355. The nearest support is seen at the level of $336 and the nearest resistance is seen at the level of $360 and $373. The momentum remains strong and supports the bullish bias.
