'So high': Tesla shares cross US$420 mark over a year after Musk buyout tweet

'So high': Tesla shares cross US$420 mark over a year after Musk buyout tweet

Tesla Inc shares traded above US$420 on Monday, more than a year after Elon Musk tweeted he had "funding secured" to take the electric car maker private at that price, only to later give up under investor pressure and regulatory concerns.

The logo of Tesla carmaker is seen on a car at the Top Marques fair in Monaco
FILE PHOTO: The logo of Tesla carmaker is seen on a car at the Top Marques fair in Monaco May 30, 2019. REUTERS/Eric Gaillard

REUTERS: Tesla Inc shares traded above US$420 on Monday, more than a year after Elon Musk tweeted he had "funding secured" to take the electric car maker private at that price, only to later give up under investor pressure and regulatory concerns.

In recent months, Tesla's shares have had a run of good fortune on the back of a rare quarterly profit reported in October, news of production ramp-up in its China factory and upbeat early deposits for its recently launched electric pickup truck.

Orders for the company's Cybertruck have reached close to the record set by its Model 3 sedans in 2016.

"Whoa … the stock is so high lol," Musk tweeted on Monday, after Tesla shares crossed the US$420 mark. (http://bit.ly/2MD07Rt)

The number 420 is closely associated with marijuana as a slang for the consumption of cannabis. It also refers to cannabis-related celebrations that take place annually on April 20.

The take-private tweet in August last year, at a time when Tesla was trading in the mid-US$330s, had taken shares as high as US$387. Later in the month, shares were closer to US$320 amid intense regulatory scrutiny.

The U.S. Securities and Exchange commission fined Musk and Tesla US$20 million each for the US$420 tweet. Musk was also forced to step down as chairman and must submit any public statements about Tesla's finances and other topics to be vetted by a legal counsel.

Reuters reported earlier on Monday the company and a group of Chinese banks have agreed to a new 10 billion yuan (US$1.4 billion), five-year loan facility for the automaker's Shanghai car plant.

Tesla shares rose over 3.6per cent in Monday's session and are up nearly 65per cent since the quarterly report in October.

(Reporting by Shariq Khan in Bengaluru; Editing by Shounak Dasgupta)

Source: Reuters

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