Elon Musk is seriously considering taking Tesla private

Musk wants to take Tesla private

"Funding secured", Musk's account tweeted.

The stock was trading at about $342 when Musk hit the Tweet button.

Musk and his luxury automaker have been under huge pressure to overcome repeated delays and deliver on promises of producing 5,000 of Tesla's more affordable Model 3 cars per week.

Following the company's surge after last week's earnings, Musk took aim again at a short-seller in a reposted short YouTube video that likened these investors to Hitler's last days.

In its second quarter results for 2018 the company posted $4bn of revenue and a loss of $717m.

Musk said in subsequent tweets that he would remain chief executive under a go-private transaction and that any deal would benefit shareholders.

Tesla is the most shorted company on Wall Street.

In the note, Musk took a more measured tone.

After his initial tweet, he followed up several times when answering questions from users on the platform.

$420 per share would be a significant premium on where Tesla is now trading, and also its performance over the first half of the year.

Tesla did not respond to a request for comment immediately.

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All of this is compounded by the fact that today The Financial Times reported that Saudi Arabia wealth funds had bought up to a $2 billion stake in Tesla recently, so its feasible that Musk has secured funding from overseas interests.

When NASDAQ trading was stopped, Tesla's shares were at $366.94, a 7.3 percent gain.

It would cost about $71 billion to take Tesla private at $420 per share.

One would imagine the Securities and Exchange Commission will be taking a look at Elon's announcement, its timing and its impact on stock price - since Tesla did not file an 8-K form.

He also said trading its stock publicly "means that there are large numbers of people who have the incentive to attack the company". Many major Wall Street bankers contacted by Reuters said on condition of anonymity that they were not aware of Musk's plans ahead of his tweets, and several expressed scepticism that a leveraged buyout of Tesla could be financed given the company's negative cash flow.

At that price, the buyout would cost almost $US72 billion, based on Tesla's outstanding stock as of July 27, but it is unlikely the deal would cost that much because Mr Musk owns a roughly 20 per cent stake in the Palo Alto, California, company.

"I fundamentally believe that we are at our best when everyone is focused on executing, when we can remain focused on our long-term mission, and when there are not perverse incentives for people to try to harm what we're all trying to achieve", he said.

Musk said he wouldn't sell his stake if the company went private.

It appears that Musk is hopeful that shareholders will simply hang in for the ride and willingly go private. Before Musk's tweet, Tesla had a market value of $58 billion, already higher than that of General Motors or Ford, even though those companies are significantly larger and more profitable.

Around 3:30 ET, Tesla released a statement via its blog, titled "Taking Tesla Private".

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