Tesla’s quarterly report could land Musk another $3 billion

03 September 2020, Brandenburg, Grünheide: Elon Musk, Tesla boss, stands laughing on the Tesla Gigafactory construction site. In Grünheide near Berlin, a maximum of 500,000 vehicles per year are to roll off the assembly line starting in July 2021. According to the plans of the car manufacturer, the maximum is to be reached as quickly as possible. Photo: Patrick Pleul/dpa-Zentralbild/ZB (Photo by Patrick Pleul/picture alliance via Getty Images)

Tesla shares are down 6% this morning, after CEO Elon Musk tweeted late last night that he was considering taking the company private at a 20% premium.

That said, his statements have some key details that could trip up a potential deal.

Tesla’s market cap is currently around $60 billion. The most recent exchange listed is 10.55. After Musk tweeted that he was thinking about taking Tesla private at $420 per share — which works out to $82 billion — that’s what seems to be getting an initial, 20% bump.

While that’s in line with a 20% increase in a company’s stock price, it seems like a fairly big number, and the reality is it’s a lot more complicated.

Tesla shares were up as much as 5% in pre-market trading this morning, while the Dow Jones was down about 100 points. According to Google Finance, Tesla’s stock price doesn’t have a history of moving in similar ways, with the 10-year range being a move of just 3.5% to 19.5%.

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