Markets

Tesla Inc: Elon Musk says he's considering taking car-maker private

Tesla Inc: Elon Musk says he's considering taking car-maker private

A tweet from Tesla boss Elon Musk's account suggests he is "considering" taking the electric auto firm private.

"Am considering taking Tesla private at $420", Musk tweeted on Tuesday, adding that he had "funding secured".

The BBC has been unable to verify the post was written by Mr Musk himself, but it has pushed the shares 6% higher. The stock was up Tuesday after the Financial Times reported that Saudi Arabia had taken a $2 billion stake in the electric vehicle company.




$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. Musk owns approximately 20 percent of those outstanding shares, which would lower the price tag a bit, but it would still be pretty hefty.

Tesla's stock spiked Tuesday after Musk made the abrupt announcement in a terse tweet. If the tweet is serious (and not the work of hackers or a particularly wild night on the factory floor), it would allow Tesla to go private and inject some much-needed capital into the company. Shares are up as high as 9% on the day. However, they are still a long way off the $420 price teased by Musk.