Elon Musk considering taking Tesla private

Elon Musk

That came after Musk voiced similar thoughts on Twitter merely an hour earlier, writing: "Am considering taking Tesla private at $420".

He reassured investors that he planned to remain CEO.

And Tesla also released an email to its employees in which Musk argued going private would release the company from "wild swings in our stock price that can be a major distraction for everyone working at Tesla".

Musk complains that Tesla is "the most shorted stock in the history of the stock market" and many people "have the incentive to attack the company". Musk has complained repeatedly about short-sellers, who profit when Tesla stock drops.

Elon Musk's suggestion on Tuesday that he would like to take Tesla Inc private may provide something the electric vehicle maker needs: a little debt relief. Tesla is already the most valuable automaker in the United States.

Earlier in the day, Tesla shares had worked their way on word of a new stake in Tesla from the Saudi Arabia sovereign wealth fund, according to Financial Times.

As he often does, the outspoken entrepreneur took to Twitter to deliver the news.

In an internal email, sent from Musk to Tesla employees on August 7, the CEO confirmed most of this, as he explained his thinking directly. It finished up 11%, at $379.

What is the first thing that comes to mind when you think of billionaire entrepreneur Elon Musk? Doesn't really go by the book. "In this case, it's hard to say he did anything wrong in the sense that he communicated with everyone at the same time". Shareholders would be given the choice to either remain an investor or be bought out at $420 a share, a 20-percent premium over the company's stock price after its second-quarter earnings call last week. He said he would create a special fund to allow that.

While the decision isn't set in stone, Musk layout out a provisional plan to take the company private.

What seemed like a joke at first may be serious and as the company's stock price went insane, trading had been halted. "Will ensure their prosperity in any scenario".

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Tesla has burned through cash while struggling to produce the Model 3, its lowest-priced electric vehicle.

Shares climbed more than 7 per cent before the Nasdaq suspended trading pending a formal announcement. Musk has insisted Tesla has no such need.

Once the tweet began making the rounds, stock prices surged. In May, after Tesla reported a loss of more than $700 million for the first quarter, he dismissed one question on the earnings call. "This is not how you do it and it makes you wonder how seriously to take it", said Erik Gordon, a business and law professor at the University of MI.

"Musk does not want to run a public company", Munster wrote on his website.

Tesla Motors started selling its stock to the public in 2010 - the first initial public offering of a US automaker in more than a half-century.

The stock move could give Tesla some debt relief.

Tesla said in a regulatory filing in 2013 that investors interested in keeping up with Tesla should follow Musk's account.

How can Tesla and its CEO Elon Musk save the world if it has to reveal its business plans to the SEC and Wall Street analysts?

Musk has a history of outrageous behavior on Twitter. The report said that the Saudis had acquired a significant $2 billion to $3.2 billion stake in Tesla. The tweet was apparently an April Fool's joke.

Going private is one way to avoid the intense scrutiny of public markets.

Like any other investor, Musk is beholden to securities laws and several securities attorneys told Reuters he potentially could face lawsuits if it was proven he did not have secure financing at the time of his tweet.

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