Since setting Wall Street ablaze on Tuesday with an unexpected tweet about taking his car company Tesla private, Elon Musk has been met with a healthy dose of skepticism over his proposed plan as well as his unconventional method of announcing it.
Analysts are taking Musk at his word that he has indeed secured funding, has investor support, and is seriously considering taking the company private — he could face serious legal consequences if he wasn’t entirely truthful. But many nonetheless find the $420 a share price tag he’s floated exceptionally high given that Tesla ended trading on Wednesday at $370.34 a share.
It would be the largest buyout of all time and would require gargantuan amounts of capital to complete at the more than $70 billion valuation implied by Musk’s tweet. The company would need roughly $57 billion in committed financing to buy up the 80% of the company Musk doesn’t own, according to Goldman Sachs estimates.