Kevin O’Leary: Elon Musk ‘Made a Really Good Chess Move’
This article was originally published on ETFTrends.com.
Canadian businessman and "Shark Tank" television personality Kevin O'Leary opined on the tweet that sent capital markets spinning yesterday when Tesla co-founder and CEO Elon Musk announced the idea of taking the Palo Alto, California-based company private. O'Leary, who confessed he doesn't own the stock, praised Musk for mulling the decision.
"If I were shorting this stock, I'd be sweating bullets," said O'Leary.
"If Apple wanted to be in the car business, this is how you do it--you step up, doesn't have to be $420 (per share), it could be another price. I think Elon Musk has made a really good chess move here."
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
With the proposed price of $420 per share, it would effectively bring Tesla’s market value to a total of $71 billion. In an email, Musk told Tesla employees that he believes going private would be the "best path forward."
"I fundamentally believe that we are at our best when everyone is focused on executing, when we can remain focused on our long-term mission, and when there are not perverse incentives for people to try to harm what we're all trying to achieve," Musk wrote.
Musk's tweet halted trading of the company's shares on Tuesday afternoon for 92 minutes, leaving Tesla investors in a frenzy. The shares did resume trading prior to the close of the market, and the share price closed Wednesday's trading session at $370.34--down 2.43%.
O'Leary suggested that Musk could sit with any of the Silicon Valley tech company magnates, such as Facebook CEO Mark Zuckerberg or Apple CEO Tim Cook, and negotiate a selling price.
"What he's (Musk) done here is form a speculative aura around a position that's at a ridiculous valuation," said O'Leary.
Related: Elon Musk: Tesla Going Private is ‘Best Path Forward’
Ironically, O'Leary was in his Tesla Model X when he first got word of news breaking on Musk's tweet. Unfortunately, his sentiment for the vehicle contrasted his views on the emblem, specifically its shares.
"I love the car, I hate the stock," O'Leary said.
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