Elon Musk says he's considering taking Tesla private

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Google Finance

Munster predicted a one-in-three chance that Musk will actually take Tesla private. "Funding secured, ' Musk tweeted, following up with 'good morning" and a smiley emoji. In addition to Tesla, he runs private space exploration firm SpaceX and tunnel-building and transit firm The Boring Company.

Musk laid out his rationale: As a public company, Tesla is subject to "wild swings" in its stock price that serve as "a major distraction". He added that "being public means that there are large numbers of people who have the incentive to attack the company".

In the note, Musk took a more measured tone.

The bombshell proposal to take the electric auto maker private prompted regulators to take the unusual step early Tuesday afternoon of suspending trading in the company's stock.

Since the Saudi state fund could not make a direct purchase from Tesla, it acquired the position in secondary markets with assistance from JP Morgan.

"Those two things taken together really sent the market up, really just made investors go insane", said Bloomberg News Editor Tom Giles.

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In his blog post, Musk said he wants to give shareholders an option. It finished up 11%, at $379.

Tesla did not return repeated calls for comment from CNBC, nor did the Securities and Exchange Commission, as of this publishing. "Elon Musk doesn't have the financing, and the SEC is going to crush him for it". "Funding secured", he said.

He pledged to hold on to his stake in the company, about 20%, no matter what. He reiterated that he would ensure the "prosperity" of Tesla shareholders "in any scenario".

Musk's tweet comes as Tesla faces continued pressure to ramp up output of the Model 3 sedan, its first effort at the middle market.

Tesla's stock bounced 7.3 percent Tuesday before trading was halted on Wall Street, according to Bloomberg.

The goal, Musk added, was not to tighten his grip on Tesla. And if the information in the tweet isn't true, Musk could be looking at some stock price manipulation allegations. As Twitter exploded, Tesla representatives, usually quick to answer reporters' calls, remained silent.

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Musk has been in a very public battle with these shorts for years.

"He originally brought Tesla public in 2010, given he could no longer personally finance its growth, and has continually expressed his frustration with the company being public". Musk also said he had no intention of selling his stake, and he said he would remain on as CEO.

Back in 2013, Netflix CEO Reed Hastings came under fire from the SEC, after disclosing Netflix's streaming hours via Facebook. Netflix stock moved higher as a result.

Some people on Twitter immediately began speculating that Musk may have wandered into a potential regulatory violation with his tweet.

On April 1, amid rising market concerns about a cash crunch at Tesla, he tweeted an email announcing that Tesla would have to file for bankruptcy.

Going private is one way to avoid the intense scrutiny of the market.

Musk Says in Tweet He Is Considering Taking Tesla Private
Tesla now has a market value around $60 billion, which would make its take-private price tag about $80 billion, Galloway said. The BBC has been unable to verify the post was written by Mr Musk himself, but it has pushed the shares 6% higher.

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. He seems certain that the money is there in a follow-up tweet later in the afternoon.

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