Turns Out Musk Might Actually Be Serious About Taking Tesla Private

Tesla is the most shorted company on Wall Street. "Funding secured", the eccentric CEO tweeted earlier Tuesday afternoon, sending shares up $16 in five minutes, to $371.07. That said, if they do want out, they can sell their shares at $420 per share, which is a fair bit higher than Tesla's current stock price ($382.67 at the time of writing, up from today's open price of $343.84). That would value the company - already the United States' most valuable automaker - at more than $70 billion. Musk's offer is 9 per cent higher than Tesla's peak closing price of $385 reached almost a year ago.

During the conference call accompanying the results, Mr Musk said he expected the company to avoid going back to the markets for capital and to be "essentially self-funding on a go-forward basis".

[T] he reason for doing this is all about creating the environment for Tesla to operate best. They did come from Musk's verified Twitter account but it's possible that someone could have hacked the account and published the tweets to manipulate share value for personal gain. Public companies often halt trading in their stock and file official releases before making similar statements so as to minimize market jolts and abide by guidance from the Securities and Exchange Commission. And if the information in the tweet isn't true, Musk could be looking at some stock price manipulation allegations.

A spokesman for Tesla did not immediately return a request for comment. It's one of the most shorted stocks out there.

He also tweeted that his "hope is all current investors remain with Tesla even if we're private".

Not long after the announcement, Tesla's stock surged 6.8 percent to $365.36 - adding $900 million to Musk's fortune in the process.

However, Mr Musk has said he has no plans to do so and promised that the firm will be profitable in the second half of the year, barring any unforeseen events. Musk noted that the price represented a 20% premium over the company's share price after last week's second-quarter earnings report.

BUYING TIME. Elon Musk has had a bumpy relationship with investors as of late, and has taken Twitter to lash out at short sellers repeatedly. The Financial Times earlier reported the investment. Will be way smoother & less disruptive as a private company.

Musk has occasionally griped about the frustrations of running a public company: previous year he called Tesla a "drama magnet" - and he has vowed not to do an initial public offering for his other major venture, SpaceX, until after regular trips to Mars begin, if ever.

Tesla doesn't meet the typical profile of a company that can raise tens of billions of dollars of debt.

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