Elon Musk considers taking Tesla private as stock jumps

Tesla short-sellers took another hit on Tuesday after the electric vehicle maker's CEO Elon Musk tweeted that he could take the company private at $420 per share.

In his tweet, Mr Musk said he could buy outstanding shares in the firm for $420 each, around a fifth higher than the share's current price.

The stock was halted at $367 a share shortly after 2 p.m. (ET), as some grew concerned that Musk's tweets were an attempt at market manipulation.

"Am considering taking Tesla private at $420", Musk tweeted on Tuesday, adding that he had "funding secured".

A spokesman for Tesla did not immediately return a request for comment.

Tesla shares, which were already rising on news of the Gulf investor, spiked in response. "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".

In keeping with his unorthodox style, Musk made the out-of-the-blue announcement in a terse tweet.

"Details, structure, participants and how the valuation has been determined remain to be seen".

Musk's abrasive style has often been a source of friction with Wall Street. Musk owns almost 20 percent of the company.

The outspoken CEO berated analysts in the company's first-quarter earnings call, and tried to atone for his rude behavior in the second-quarter call.

But asked if he would take legal action against Musk over the allegation, Unsworth said: 'If it's what I think it is yes'.

Last week, when the company shared its second-quarter earnings, investors were hopeful that Musk had turned over a new, less-erratic leaf after he apologized for his freaky past behavior.

Is this a material announcement by Tesla's CEO?

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