Elon Musk’s potential LBO would be largest ever, valuing Tesla at $82 billion


NEW YORK — All the market had was a couple tweets to go by. But based on those, the transaction described by Elon Musk for Tesla could be the largest leveraged buyout in history.

Back of the envelope, Musk’s tweet that funding was secured to take the electric carmaker private at $420 a share would equate to an enterprise value of about $82 billion including debt.

Granted, Musk owns nearly 20 percent of the company, so about $66 billion would be necessary to complete the transaction. That would exceed the largest leveraged buyout in history, Texas electric utility TXU, which was announced before the financial crisis in 2007.

While the list above isn’t adjusted for inflation, Tesla would still hold the top spot based on the information available. The company has yet to confirm a transaction via traditional means, but Musk issued subsequent tweets and a statement that would imply he is serious about the process.

Tesla shares closed higher by nearly 11 percent to $379.57 in New York.


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