Musk U-turn may prompt oil firms to target Tesla 


Tesla is now a takeover target: Jefferies analysts warn Musk’s ‘going private’ tweets could spark oil and tech firms to consider a bid for the firm

Jamie Nimmo For The Financial Mail On Sunday

Oil giants could be mulling surprise bids for Tesla after chief executive Elon Musk ditched a controversial plan to take the electric car company private, it has been claimed.

Analysts at investment bank Jefferies said the billionaire entrepreneur’s tweets about ‘going private’ had probably made it a takeover target.

Debacle: Elon Musk

Debacle: Elon Musk

Debacle: Elon Musk

Analyst Philippe Houchois said the debacle, which has caught the eye of regulators, could lead to talks with other investors. He said oil and tech firms are more likely to be eyeing Tesla than carmakers.

‘With its long-term mission intact but short-term growth shaky, now may be the time for third parties to get involved, be it from technology or even oil,’ Houchois wrote in a note last week.

Investors have been sceptical of Musk’s claims he intended to take the company private and that he had secured funding to do so. Some claimed it was a move by Musk to wipe out Tesla’s short-sellers.

 

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