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%.