Tesla trading halted after Elon Musk tweets about taking company private

Tesla boss Musk weighs go-private deal for electric carmaker

Elon Musk says he's considering taking Tesla private | TheHill

"Funding secured", Musk tweeted, following up with "good morning" and a smiley emoji. It's not uncommon for trading in a stock to be halted in the wake of unexpected or unsettling news.

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.

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. Musk has vowed that the company will start turning a regular profit in the second half of this year.

On April Fool's Day, Mr Musk, who owns nearly 20% of the company, joked on Twitter about Tesla going bankrupt.

Tesla shareholders would need to vote in favor of going private before the decision is finalized, Musk concluded.

Galileo Russell, founder of HyperChange TV and an outspoken supporter of Musk and Tesla, said in an interview on Cheddar he doesn't want to sell his shares.

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

Now the question is, is this a similar move, taking the pressure off the public performance that Musk disdains each quarter, combined with some hubris over decimating the multitude of short positions.

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

$420 per share would be a significant premium on where Tesla is now trading, and also its performance over the first half of the year.

The gains added to upward movement on the stock after The Financial Times reported earlier that a Saudi Arabian sovereign wealth fund had built a stake of between three and five per cent in the company. The stock had been worth about $342 a share before Musk's tweet, and shares quickly jumped as high as $371.

"I believe Tesla considers Tweets as public disclosure". The announcement, made initially via Twitter, stunned investors and sent Tesla's stock price soaring as much as 13 percent. "Funding secured." At 2:08 p.m., trading of Tesla shares was halted at $367.25, up 7.4 percent over Monday's close.

Musk even had a price - $420 a share. "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 added that "being public means that there are large numbers of people who have the incentive to attack the company". The company did not immediately respond to a request for comment on the likelihood that it will go private, potential timing for doing so, or the funding sources Musk referred to.

Mr Musk has long raged against short sellers and mentioned his desire to be rid of them as one of his reasons for taking Tesla private.

It appears that Musk is hopeful that shareholders will simply hang in for the ride and willingly go private.

Earlier today, I announced that I'm considering taking Tesla private at a price of $420/share.

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