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 more notable short sellers in Tesla's stock, Jim Chanos of Kynikos Associates, commented on Musk's tweet to CNBC.

"Both longs and shorts are susceptible to wild price moves which can easily swing a trader's book from profit to loss in a single day, which may be the reason they are in the name in the first place", he said. The Financial Times reported Tuesday that Saudi Arabia's sovereign wealth fund had recently amassed a US$2-bilion stake in Tesla. It zoomed as high as $371 per share before trading was halted at $367 per share just after 2 pm EDT.

"I believe Tesla considers Tweets as public disclosure".

As he often does, the outspoken entrepreneur took to Twitter to deliver the news. Sometimes trading in stocks is even suspended while a company prepares a big announcement.

"Good morning", he tweeted less than an hour later, adding a smiling emoji.

His US$12b Tesla stake would presumably be rolled into the private enterprise.

Gerber Kawasaki CEO Ross Gerber and FBN's Hillary Vaughn on how Tesla CEO Elon Musk tweeted that he may take the company private. Prices seesawed in the range of $360 to $370, a roughly 7 to 8 percent rise for the day, while investors tried to decide whether Musk was joking. He reiterated that he would ensure the "prosperity" of Tesla shareholders "in any scenario". Ends negative propaganda from shorts.

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"Am considering taking Tesla private at $420".

But in the latest quarterly call last week, Musk struck a more amicable tone. No final decision had been made, he said.

Musk has lashed out at critics and investors who have shorted the stock, going so far as to call one prominent critic's employer to silence him, and refusing to take a hard question from a financial analyst in the company's June shareholder meeting. As he explained "Being public ... subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term". And then there are the short sellers. The company had a market value of $58bn as of Monday's close. However, the structure envisioned for Tesla is similar in many ways to the SpaceX structure: external shareholders and employee shareholders have an opportunity to sell or buy approximately every six months. Such backers begged Musk on Twitter to be allowed to keep their shares, and Musk assured them that they could.

"This has nothing to do with accumulating control for myself", he said.

Musk releases an official statement for the company. They did come from Musk's verified Twitter account but it's possible that someone could have hacked the account and published the tweets to manipulate share value for personal gain.

But Musk later on Tuesday seemed to confirm the plan, Tweeting that: "Investor support is confirmed".

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