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

Musk has been under intense pressure this year to prove he can deliver on his promise to turn his money-losing company into a profitable higher-volume manufacturer, a goal that has propped up Tesla shares and resulted in a market value higher than that of General Motors Co. The company had a market value of $58bn as of Monday's close.

Elon now owns about 20 percent of Tesla and so he would need something like $50 billion in additional capital to fully privatize the company, along with a shareholder vote of "yes" to the move.

If Tesla went private, investors could keep their stakes in Tesla through a special fund, or sell their shares at $420 United States dollars.

Separately, the Financial Times reported on Tuesday that Saudi Arabia's sovereign wealth fund, overseen by Crown Prince Mohammed bin Salman, has built an undisclosed stake of 3-5% in Tesla. He cited SpaceX as an example and said it is "far more operationally efficient" because it is a private company.

Tesla stock was halted at $367.25 per share shortly after 2 p.m., before closing up 11 percent after resuming trade at 3:45 p.m.

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Just last week, the company announced that it would be upping the price of its subscription to $14.95 a month. MoviePass has existed for years, but it used to be a little-known, significantly more expensive program.

"Elon Musk does not want to run public companies", Munster said.

While Twitter users had questioned whether the $420 price was real - the number is a slang term for marijuana - he confirmed that it was about a 20 percent premium over Tesla's share price after its second-quarter earnings.

Musk has a history of making bold statements on Twitter and walking back from the precipice after more careful consideration, but the more detailed email to employees seems to add credence to his plan to go private.

Just under two hours after posting the Tweet about potentially going private, Musk took to Twitter again saying shareholders could either sell at the $420 price or hold onto the shares as the automaker goes private. If we were to go private, employees would still be able to periodically sell their shares and exercise their options. The stock had been worth about $342 a share before Musk's tweet, and shares quickly jumped as high as $371. It is also the only auto maker building cars (some of them) under a tent, as Tesla strains to crank out cars for Model 3 buyers in the waiting line to buy and collect tax credits. He also said he does not now have a controlling vote in the company and wouldn't expect a single shareholder to have one if the company were private. I think he's serious.

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.

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


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