Elon Musk tweets he may take Tesla private

Elon Musk tweets he may take Tesla private

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.

He also said that he would hold on to his almost 20% stake in the company if it were taken private, and that he wouldn't expect himself or any other investor to have a controlling vote after the buyout. At $420 a share, Tesla would have an enterprise value of about $82 billion including debt. That would make the electric carmaker more valuable than fellow vehicles producer BMW ($64 billion), as well as companies such as Starbucks ($70 billion) and CVS ($66 billion).

Second, my intention is for all Tesla employees to remain shareholders of the company, just as is the case at SpaceX.

The rally after Musk's tweet unleashed fresh pain for short-sellers in Tesla, the most shorted US stock.

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 p.m.in NY.

Musk has also clashed repeatedly with critics, especially investors who have taken short positions on the stock, meaning they benefit when the price falls. The CEO said shareholders would have the final say if he decides to follow through on going private, and that he would stay in his job.

"I believe Tesla considers Tweets as public disclosure". "His credibility has come into question over a number of things".

Within minutes, the stock surged another $15 to $370 per share.

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Tesla's shares were at $362.74 prior to the share halt being lifted. They were initially driven higher after the Financial Times reported Saudi Arabia has quietly built a big stake in Tesla.

Tesla did not immediately respond to requests for comment.

But it was not clear how seriously to take the post, given Mr Musk's history on the social media service.

Musk claimed on his personal Twitter account to have secured funding for the maneuver, estimating the per-share valuation of the possible transition at $420. "Being public definitely increases the management overhead for any given enterprise".

The Tesla CEO said shareholders can either remain as investors in a privately-held version of the company or agree to a buyout at $420 per share. "His missions are big and make it hard to accommodate investors quarterly expectations".

The company is still working its way out of what Musk called "production hell" at its home factory in Fremont, California, where a series of manufacturing challenges delayed the ramp-up of production of its new Model 3 sedan, on which the company's profitability rests.

Earlier today, I announced that I'm considering taking Tesla private at a price of $420/share.

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