Musk says he may take Tesla private and shares roar

Elon Musk

Additionally, the Tesla bull weighed in on the likelihood of Musk taking the company private.

Tesla CEO Elon Musk said Tuesday he is considering taking the electric auto company private.

Without an official statement to back up the tweet, Nasdaq halted trading in Tesla shares shortly thereafter. They closed at $379.57 - up 11 percent, but far from the $420 price Musk was dangling. Of late, the longs have been winning. Either they can stay investors in a private Tesla or they can be bought out at $420 per share, which is a 20% premium over the stock price following our Q2 earnings call (which had already increased by 16%).

In contrast, private companies have a smaller number of shareholders-generally fewer than 2,000-and are not available for purchase on public markets.

On April Fool's Day, Mr Musk joked on Twitter about Tesla going bankrupt.

The news, first reported by the Financial Times, sent Tesla shares up about 5 percent.

It's highly unusual for the head of a major company make a significant announcement in such casual manner.

The news caused Tesla's share price to jump by $14. And predictably enough Twitter leaped to the 4/20 pot-smoking references.

Musk's tweet comes as Tesla faces continued pressure to ramp up output of the Model 3 sedan, its first effort at the middle market.

The goal, Musk added, was not to tighten his grip on Tesla.

Musk has lashed out at critics and investors who have shorted the stock, going so far as to call one prominent critic's employer to silence him, and refusing to take a hard question from a financial analyst in the company's June shareholder meeting.

Mr 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.

The company began hitting production targets last month after missing a series of earlier benchmarks.

Whether Musk's tweet was ethically proper or not, all of the experts interviewed by FOX Business agree the move was unprofessional at best.

Unsworth told AFP he had not reviewed the tweets in full and had only heard about them.

But asked if he would take legal action against Musk over the allegation, Unsworth said: 'If it's what I think it is yes'.

Musk also denied giving donations to a political action committee dedicated to helping the Republicans maintain control of the house.

Musk and other investors may want to thank Netflix CEO Reed Hastings for these rules, which followed a Facebook post by Hastings in 2013 detailing key subscriber data.

Asked whether he would continue to be CEO under such a scenario, Mr Musk replied there would be "no change".

Tesla has been public since it filed an IPO in 2010.

'I am not a top donor to any political party, ' he said.

Tesla has burned through cash while struggling to produce the Model 3, its lowest-priced electric auto.

Tesla is the most shorted company on Wall Street. "Boring, bonehead questions are not cool".

Tesla did not immediately respond to a request for clarification.

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