Published: Wed, August 08, 2018
Markets | By Jeffery Armstrong

Tesla Inc: Elon Musk says he's considering taking car-maker private

Tesla Inc: Elon Musk says he's considering taking car-maker private

One of the most polarizing companies on the stock market, Tesla, may go private, according to a Tuesday message from CEO Elon Musk's Twitter handle.

The BBC has been unable to verify the post was written by Mr Musk himself, but it has pushed the shares 6% higher.

"Funding secured", Musk said in the tweet. In follow-up tweets, Musk said shareholders could either sell at $420 or hold their shares and go private, adding that he was super appreciative of Tesla shareholders and would ensure their prosperity in any scenario.

Tesla didn't immediately respond to a request for comment.

Tesla CEO and founder of the Boring Company Elon Musk spoke at a news conference, June 14, in Chicago.

At 3:28 p.m., Tesla tweeted a link to a blog posting on its website titled "Taking Tesla Private", in which Musk said: "As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders".

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Tesla stock was halted for more than an hour and a half and resumed trading up 11 percent to $380.60 as of 3:49 NY.

While volume can stop trading, it's highly unlikely volume caused trading to be halted today because Tesla has historically had higher volume days than it was having on August 2, 2018.

Munster predicted a one-in-three chance that Musk will actually take Tesla private.

"The reason for doing this is all about creating the environment for Tesla to operate best", Musk began.

The surprise announcements prompted former Securities and Exchange Commission Chairman Harvey Pitt to question whether Musk had broken securities laws.

He added that he hoped all shareholders would remain and that all Tesla employees would "remain shareholders of the company".

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Musk - the company's top investor, with more than 20 percent of its shares - has long waged war against the short sellers betting the company's value will plummet.

"The market doesn't believe him", said David Kudla, the CEO of Mainstay Capital Management, which is betting against Tesla. It followed the news that Saudi Arabia's sovereign wealth fund had built a less than 5 percent stake in Tesla worth about $2 billion.

But asked if he would take legal action against Musk over the allegation, Unsworth said: 'If it's what I think it is yes'.

Short interest in Tesla on Monday stood at almost $12 billion, equivalent to 28 percent of its float, according to S3 Partners, a financial analytics firm.

"I can't believe this is something to bluff or make fun of".

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