Tesla stock trading halted after Musk teases taking company private

Tesla stock trading halted after Musk teases taking company private

In a Twitter direct message to Ars Technica, Musk confirmed he was serious about the proposal.

Tesla Inc shares jumped more than 7 percent on Tuesday after Chief Executive Elon Musk said on Twitter he is considering taking the electric vehicle maker private at $420 per share as it goes through a period of rapid growth and financial constraints. He said he may take the company private at $420 a share and already has secured funding.

It's unclear from where Musk has secured funding.

Shortly after, Mr Musk responded to replies to his tweet, asking if he would remain in control of the company.

"Am considering taking Tesla private at $420". Tesla has always been one of the most-shorted stocks on Wall Street, but so far, the company has not seen the share-price meltdown that shorts expected.

A deal at $420 per share represents a 22.8% premium to Tesla's closing price on Monday, valuing the company at about $72bn.

The company had a market value of US$58 billion as of Monday's close.

Tesla's shares jumped as high as $371.15 in afternoon trading.

The tweets have added to speculation about Tesla, which is spending heavily as it ramps up production of its latest vehicle, the Model 3.

The tweets came after a report in the Financial Times that Saudi Arabia's sovereign wealth fund had taken a 3%-5% stake in Tesla, a holding worth at least $1.9bn. The company is now valued at just over $60 billion, with Musk holding an nearly 20 percent stake in the company.

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