Elon Musk considers taking Tesla private as stock jumps

  • Elon Musk considers taking Tesla private as stock jumps

Elon Musk considers taking Tesla private as stock jumps

Elon Musk is considering taking Tesla Inc private, the chief executive officer of the electric car-maker tweeted on Tuesday.

The BBC has been unable to verify the post was written by Mr Musk himself, but it has pushed the shares 6% higher. The company had a market value of $58bn as of Monday's close. Musk owns approximately 20 percent of those outstanding shares, which would lower the price tag a bit, but it would still be pretty hefty.

Before its recent rally, Tesla's share price had been in a downward spiral for much of the summer, as the company struggled to meet production targets for its midrange Model 3 sedan. The stock had been up earlier in the day after The Financial Times reported a Saudi Arabian sovereign wealth fund had bought a $2 billion stake in Tesla.

"Am considering taking Tesla private at $420".

"I believe Tesla considers Tweets as public disclosure".

Tesla didn't immediately respond to a request for comment. I think he's serious.

A short squeeze is a trading scenario that occurs from time to time in heavily shorted stocks, when bearish traders are forced to buy shares to avoid big losses - something that ends up pushing the stock only higher. "Funding secured", Musk wrote on Twitter.