>> Another bomb shell from Tesla CEO Elon Musk, Tuesday, coming of course on Twitter. Musk twitting, am considering taking Tesla private at $420, funding secured. The announcement which would mean Tesla would offer to buyback all publicly traded shares at that prices, started a stampede into the stock, as buyers rush in for what they hope would be an easy ride to that $420 mark.
NASDAQ briefly halted trading, at the end of the session Tesla soared by about 11% closing at nearly $380. But Tesla later posted an email from Musk to employees on its website saying a final decision hasn't been made, and that shareholders had to vote for it. And then Musk laid out the benefits of going private.
Reuters correspondent, Alexandria Sage.>> Certainly Elon Musk has faced an intense period of public scrutiny this past year. A lot of this was because of the manufacturing challenges. The production hell that Elon Musk acknowledged himself that it's model 3 was undergoing. And by going private, this would alleviate a lot of that public focus.
The finger pointed, the pleasing investors on a quarterly basis.>> At $420 a share, Tesla would be valued at $72 billion. Musk hasn't disclosed the source of the funding to go from public to private, he owns nearly 20% of the company. Separately, one source told Reuters that the Saudi Arabian sovereign wealth fund has bought just under 5% of Tesla shares.
The fund also has a stake in Uber. And there's also some question about using Twitter for such announcements. The US Securities and Exchange Commission allows companies to use social media outlets like Facebook and Twitter, to announce key information, as long as investors get a heads up about which outlets will be used.
The SEC didn't immediately respond to a request for comment on Musk's tweets.