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Tesla may go private, Orsted look to enter US wind market

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Article Written by Paul Paris: Junior Investment Advisor

Euro markets mixed whilst U.S. markets continue rising

Markets in Europe closed mixed, as investors digest fresh actions in the escalating trade war between the United States and China, as Washington slapped tariffs on $16 billion worth of Chinese imports. Beijing responded with retaliatory measures. Meanwhile, on the earnings front, German power utility E.ON SE reported a slump in turnover of 13%, while Swiss Glencore plc announced its net income in the first half of 2018 at $2.8 billion, marking a jump of 13% year-over-year.

The FTSE 100 was up 0.75% at the closing bell, as insurgence companies pushing the index higher. The CAC 40 declined 0.35% at the end of the session, with TechnipFMC plc leading the losses, dropping 2.44%. The DAX closed 0.12% lower, as E.ON shares tumbled 2.89% following an unfavourable earnings report.

Tesla considers going Private

Members of Tesla’s board of directors confirmed, they have met several times last week to discuss Chief Executive Officer Elon Musk’s desire to take the company private.

"This included discussion as to how being private could better serve Tesla’s long-term interests, and also addressed the funding for this to occur," the statement issued by Tesla’s board explained. "The board has met several times over the last week and is taking the appropriate next steps to evaluate this," it added.

On Tuesday, Musk tweeted he is considering taking Tesla private at $420 a share as he has secured funding. In a second tweet, he elaborated going private would end the "negative propaganda from shorts" and enable the company to operate more smoothly. Musk also elaborated that going private would free the company from as much distraction and short term thinking as possible.

The total value of such a deal would be more than $80 billion, including debt. Musk owns 20% of the company, so on the equity side he’d need to finance something in the $50-billion ballpark.

Orsted to purchase $580 million wind farm developer

Denmark’s Orsted said it would buy U.S. onshore wind farm developer Lincoln Clean Energy in a $580 million deal to support their development what it views to be a key growth market.

Orsted, which has so far mainly looked at developing offshore wind farms in Europe, said that the global market for onshore wind power is expected to grow at an exponential rate in the coming years, and that the United States is a leading onshore wind market.

The company has stated that through the acquisition of Lincoln Clean Energy Orsted is gaining a strong growth platform within the United States.

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