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Elon Musk Could Probably Use Cryptocurrencies to Take Tesla Private

Elon Musk, CEO of Tesla surprised everyone with a tweet that announced that the company could go private pretty soon. Thus, on Friday, the selling of Tesla Inc. shares was reportedly halted. Even though Elon Musk claims to have “funding secured,”  Haydar Haba of Andra Capital suggests that Musk might rely on cryptocurrency tokens to achieve his ambitions. Notably, Haba runs a similar model of business.

The Tweet
Am considering taking Tesla private at $420. Funding secured.

— Elon Musk (@elonmusk) “https://twitter.com/elonmusk/status/1026872652290379776?ref_src=twsrc%5Etfw”>August 7, 2018

Haydar Haba explains her point of view in an interview with Forbes

“I love Tesla, I love Elon Musk, and I think he should definitely consider the blockchain and tokenization of assets. We’ll call it the Tesla coin.” 

Haba invests in private tech companies that are likely to go public in the next few years, by using cryptocurrency. Including a new Silicon Valley coin backed by Andra capital, it is in the process of raising USD 1 billion in token sales.

Cryptocurrency, the New Shares

In the instance that Elon Musk will employ this model, Telsa will be among the first to adopt the process of investing in the stock market with digital tokens instead of traditional shares. While many firms have been exploring this option, going private will lend Telsa an edge above them. It would also facilitate Telsa, to transfer the shares of the company easily through blockchain; stepping above the money and time consuming traditional method.

Haba further explains that this could be the perfect time to step on to the crypto bandwagon especially for Elon and Tesla as the digital tokens will be the conventional thing within the next 20 years. He stated:

“private and public (listings) will go away, and we’re only going to have one high-quality tokenized offering.”

Though tokenized company shares will compete with other cryptocurrencies to be adopted as an investment channel, Haba believes that the former will prevail as they are backed by “real growth assets.” While Haba is just sending across advice for Musk, this could massively shape cryptocurrencies’ future and their uses.

As off now, Tesla Inc. relies upon a 3% to 5% stake in the company by Saudi Arabia’s sovereign wealth fund to go private. Reportedly, this would be an investment of around USD 2-3 billion, but if it turns to crypto tokens, the company could do a lot better.

 

 

 

Arshmeet Hora

The idea of expressing one’s views and reviews through words is beyond intriguing. What started as a creative let out has now become a passion and a profession for Arshmeet K Hora. In her own words ” with every word, every article that I write, my passion towards this medium has grown stronger.”  Arshmeet covers latest crypto news and updates as well as what happening new revolving around Blockchain Technology.

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