Elon Musk says he's considering taking Tesla private

Tesla CEO Elon

Tesla CEO Elon

To take it private, the billionaire would have to pull off the largest leveraged buyout in history, surpassing Texas electric utility TXU's in 2007. Shares jumped in Tuesday trading following reports that the Saudi Arabian sovereign wealth fund took a $2 billion stake in the company earlier this year.

In his tweets, Musk said he would keep his Tesla shares no matter what happens, and noted that he now doesn't hold a controlling interest in the company.

"Am considering taking Tesla private at $420".

"Funding secured", the tweet added, offering no further details on timing or source of funding. It's not clear Musk has the funding to complete the deal, and he would need a majority of shareholders to agree to the plan.

Earlier today, Elon Musk did what he does best and set the internet ablaze - this time, based on a tweet about potentially taking Tesla private again.

Musk is leaving it to shareholders to decide if they want Tesla to privatize.

But in the latest quarterly call last week, Musk struck a more amicable tone.

George Galliers, analyst at Evercore ISI said he believed the tweet was serious.

Nasdaq stock exchange halted trading in Tesla shares around 2.08pm local time.

In the past few months, Musk has become embroiled in a series of spats with the news media. "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.

Around 1:00 pm today, Musk issued a string of tweets about abandoning the company's public listing and taking the company private at $420 Dollars a share.

Tesla CEO and founder of the Boring Company Elon Musk spoke at a news conference, June 14, in Chicago. Shares lifted almost 11% to finish at just below $380 per share in response, following a similar surge after the Q2 earnings report. Factoring in $US8.8 billion ($11.9 billion) in debt, Musk's ganja-friendly target price to go private would value the company at around $US80 billion ($107.8 billion).

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.

Tesla has had more than its share of ups and downs over the past few months, due to an intense focus on production rates and sales figures for Tesla's mass-market Model 3 electric auto. Tesla lost another $717.5 million in its most recent quarter.

It would be one of the biggest go-private deals on record with a price tag of about US$72 billion, based on US$420 per share.

Tesla has been public since it filed an IPO in 2010.

"If the process ends the way I expect it will, a private Tesla would ultimately be an enormous opportunity for all of us", 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.

Tesla stock had closed on August 6 (the previous day) at $341.99.

The company had a market value of US$58 billion as of Monday's close. "He will live to see another day".

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