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What do you mean 'way higher than the Saudi's were planning on'? I'm confused about the logistics of taking a company private, or how the Saudis would be negatively affected by Musk tweeting out that he effectively wants the stock to go up in price.



Answer for your Q is already there in OP's post

>He is willing to take it private at the $420 price, probably way higher than the Saudi's were planning on

> how the Saudis would be negatively affected by Musk tweeting out that he effectively wants the stock to go up in price.

Saudis would have to shell out more money if valuation keep going higher


The stock was work $360 before his tweet and almost $390 afterwards (before the market decided it was a boutade); if Musk can prove he has the cash, the price will naturally gravitate towards $420. That basically means he's daring the Saudis to pay 15% more (about $10bn more), in order to take over from him, than they had presumably planned to do.


> the price will naturally gravitate towards $420

There's a decent chance of a bidding war driving the share price far higher than that.

This is strategic for the Saudis. And there are other strategic investors and sovereign wealth funds who will not want to see Tesla taken private for 10% above today's closing price.

Tesla's market cap is only 6% of Apple's, and Apple isn't geopolitically strategic.

Norway, China and Abu Dhabi all have SWFs larger than Saudi Arabia [1], and the energy implications of letting Tesla go would be strategic for each of them.

[1] https://en.wikipedia.org/wiki/Sovereign_wealth_fund#Largest_...




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