Elon Musk, Not Tesla (NASDAQ:TSLA), Engaged Morgan Stanley to Assist in ‘420’ Proposal
$TSLA, $MS, $GS
Elon Musk, 47 anni, has engaged Morgan Stanley (NYSE:MS) to assist him in his potential bid to take Tesla (NASDAQ:TSLA) private.
Morgan Stanley is advising Mr. Musk, not Tesla, its board or a special board committee formed to to evaluate a potential take-private proposal.
The iconic Wall Street investment bank suspended coverage of Tesla’s stock Tuesday without explanation.
On 7 August Tesla CEO Musk, while driving to the airport Tweeted that he wanted to take the fledgling EV maker private and had “funding secured” in what has come to be know as the ‘420’ Tweet.
Then later in a blog post, he later indicated that no such financing deal had been closed. The Tweet has drawn a subpoena from the Securities and Exchange Commission (SEC).
By adding Morgan Stanley to Goldman Sachs Group Inc., Mr. Musk has tied up the Top 2 merger advisers in the US this year. Both investment banks have been the lead underwriters on most of the company’s stock and convertible debt offerings.
Morgan Stanley is among Tesla’s 20 largest shareholders, with a 0.6% stake. Its Tesla analyst, Adam Jonas, has historically been 1 of the more Bullish researchers of the stock.
The Palo Alto, CA-based EV maker did not respond to a request for comment.
A spokesman for Morgan Stanley declined to comment.
Morgan Stanley and Goldman Sachs have longstanding ties to Mr. Musk, Tesla’s Chairman and largest shareholder at 20%. As of February 2017, Mr. Musk owed Morgan Stanley $344.4-M in personal loans backed by his Tesla shares.
|HeffX-LTN Analysis for TSLA:||Overall||Short||Intermediate||Long|
|Neutral (-0.08)||Neutral (-0.16)||Neutral (-0.06)||Neutral (-0.03|
Thursday, Tesla’s shares finished at 320.10, -1.54, or -0.48%) in New York.