Tesla shares halted as Elon Musk tweets he'll take the firm private

Elon Musk tweet 'Am considering taking Tesla private at $420. Funding secured'

Tesla boss Elon Musk has shocked the market with a bombshell tweet saying he is mulling taking the electric auto company private.

The Tesla CEO said shareholders can either remain as investors in a privately-held version of the company or agree to a buyout at $420 per share.

The post included an email from Musk to company employees in which the billionaire tech executive said going private was "the best path forward" for Tesla.

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

In the past year alone, Tesla shares have seen a wild swing, trading as low as $244.59 last April to reaching its all-time high less than six months later amid upbeat Model 3 sentiment.

He implied that the funding values the company at $420 a share.

In subsequent tweets on Tuesday, Musk said that he hoped all current investors would stay with Tesla even if it went private, and that he would be willing to create a fund to allow it.

A price of $420 per share price would represent a almost 23 percent premium to Tesla's closing price on Monday, which gave the company a market value of about $58 billion.

When asked on Twitter whether he was serious, Musk replied: "Yes.It saves a lot of headaches".

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The surprise announcements prompted former Securities and Exchange Commission Chairman Harvey Pitt to question whether Musk had broken securities laws.

The stock was halted at $366.94 per share.

Tesla didn't immediately respond to a request for comment.

Elon Musk said he's thinking about taking Tesla private.

Musk's tweet came two weeks after Tesla revealed it had burned through $739.5 million in cash on its way to a record $717.5 million net loss in the second quarter, as it cranked out more electric cars.

Tesla and its investors are no stranger to seeing the company's share price follow a rollercoaster trajectory. And if the information in the tweet isn't true, Musk could be looking at some stock price manipulation allegations. "The 16 per cent premium to the current share price may not be high enough to incentivise existing shareholders to support the sale".

"I can't believe this is something to bluff or make fun of".

"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 wrote.

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