Elon Musk tweets about taking Tesla private, shares soar

Elon Musk tweet 'Am considering taking Tesla private at $420. Funding secured'

Elon Musk tweet 'Am considering taking Tesla private at $420. Funding secured'

Elon Musk is considering taking Tesla Inc private, the electric auto maker's chief executive tweeted on Tuesday.

"If the process ends the way I expect it will, a private Tesla would ultimately be an enormous opportunity for all of us". "Funding secured." At 2:08 p.m., trading of Tesla shares was halted at $367.25, up 7.4 percent over Monday's close.

He later deleted that tweet and apologized for that exchange, but at least one analyst suggested Musk needed to get off Twitter to restore investor confidence in the company.

Tesla shares rose almost 9 percent before being halted pending news.

Musk's other company, aerospace firm SpaceX, is privately owned.

Separately, Financial Times reported on Tuesday Saudi Arabia's sovereign wealth fund, overseen by Crown Prince Mohammed bin Salman, has built an undisclosed stake of between 3 and 5 percent stake in Tesla.

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

Munster also said he did not see legal risk from Musk's tweets due to the Reed Hastings Rule, an SEC guideline announced in 2013 that said it was OK for companies to reveal key information on social media as long as investors have been alerted. Musk said he is considering taking the electric vehicle maker private. 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.

When Musk responded to one Model 3 owner's praise for the electric auto on Twitter and mentioned the upcoming Autopilot upgrade, another person asked the CEO about the changes v9.0 would have on Model S and X vehicles. Before Musk's tweet, Tesla had a market value of $58 billion, already higher than that of General Motors or Ford, even though those companies are significantly larger and more profitable. "The 16 percent premium to the current share price may not be high enough to incentivize existing shareholders to support the sale". In the future, once Tesla enters a phase of slower, more predictable growth, it will likely make sense to return to the public markets.

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

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

He has chastised reporters for focusing on accidents of autonomous cars instead of their safety potential, and accusing one news organisation of being "relentlessly negative" about Tesla.

In an interview with Bloomberg News in January 2015, he spoke of the benefits of running his closely held rocket company Space Exploration Technologies Corp. and his frustrations with having taken Tesla public in June 2010.

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