Tesla boss Musk weighs go-private deal for electric carmaker

Elon Musk

"Funding secured", Mr Musk said on Twitter. The stock then plunged to as low as $244.59 in April as the company struggled to meet production targets for its Model 3 sedan and Moody's Investors Service cut Tesla's credit rating deep into junk-bond territory.

Tesla has been the subject of a number of short sales by investors - who feel the money-losing company doesn't have a path to profitability and that its shares will tumble.

Musk has had a famously combative relationship with Wall Street, having mocked Tesla's short-sellers on Twitter and joked about Tesla going bankrupt.

Shares were pummeled in May after Musk abruptly cut off questions from Wall Street analysts over Tesla's spending plans. Short sellers are speculators who effectively bet against the price of Tesla's shares, potentially adding to the volatility of Tesla's stock price and giving them a vested interest in seeing Tesla fail.

Whether Musk's tweet was ethically proper or not, all of the experts interviewed by FOX Business agree the move was unprofessional at best. He responded to one user who observed that going private would save Tesla "a lot of headaches".

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.

Earlier in the day, the Financial Times reported that Saudi Arabia's sovereign wealth fund, overseen by Crown Prince Mohammed bin Salman, has built an undisclosed stake of between 3 and 5 per cent stake in Tesla.

Not long after the announcement, Tesla's stock surged 6.8 percent to $365.36 - adding $900 million to Musk's fortune in the process.

A leveraged buyout of Tesla, which went public in 2010 on Nasdaq and which sports a market capitalization of almost $64 billion, or other take-private transaction would represent an abrupt change in financial strategy.

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"I believe Tesla considers Tweets as public disclosure". The company had a market value of $58bn as of Monday's close.

The plan would need shareholder approval, but Musk's tweet sent Tesla stock spiking by nearly 9%.

His plan, outlined in the email to employees, would give shareholders a choice to sell their shares or maintain a stake in the private company.

Musk also owns about 10 percent of Space X, which is valued at $25 billion and a large portion of The Boring Company, which analysts have said could reach $16 billion in value if it executes on current contracts.

Tesla CEO Elon Musk's discussion of privatizing the company's shares sparked a seesaw in prices before trading was suspended.

"His mission for Tesla (to accelerate the globe's adoption of sustainable energy) is both grand and long-term, making it hard to accommodate investors quarterly expectations", he wrote.

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

Musk did not elaborate how he had secured the funding that he had mentioned in his tweet - or which lender was leading the effort.

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