Analysis: Musk’s Tesla buyout plan could test Wall Street’s nerves


SAN FRANCISCO: A leveraged buyout of electric carmaker Tesla could be an ominous sign of market exuberance, but investors may need more justification to run for the exits.

CEO Elon Musk’s suggestion on Tuesday that he wanted to take Tesla private at US$420 a share, putting a value of US$72 billion on the carmaker, had some investors wondering whether getting such a huge deal completed would signal that Wall Street has become overheated after nearly a decade of gains following the 2008 financial crisis.

“A mega-LBO of a company notorious for its cash burn…



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