Tesla CEO Elon Musk tweeted that he is considering taking Tesla private when shares in the electric carmaker hit $420. The news comes as the Saudi government revealed a huge stake in the company.
“Am considering taking Tesla private at $420,” Musk tweeted on Tuesday, adding that he had “funding secured.”
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
Tesla has been publicly traded since 2010, and has seen its share price rise from just under $20 then to $360 at time of writing. The company is currently valued at just over $60 billion, with Musk holding an almost 20 percent stake in the company.
Musks surprise announcement comes as the Financial Times revealed that a fund controlled by the Saudi Arabian government holds a stake of between three and five percent in the company.
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The news caused Teslas share price to jump by $14. However, they are still a long way off the $420 price teased by Musk. If Musk were to make good on his tweet, it is unclear from where he could secure funding to buy out Teslas shareholders.
Before its recent rally, Teslas share price had been in a downward spiral for much of the summer, as the company struggled to meet production targets for its midrange Model 3 sedan.
Musks erratic behavior on Twitter also worried investors. On top of his ongoing feuds with journalists, Musk called a diver involved with the rescue of a Thai childrens soccer team a “pedo,” an outburst that knocked four percent off Teslas value.
Taking Tesla private would take some pressure off Musk to behave, and would free him from having to deliver quarterly earnings reports, which have so far this year shown losses. Musk has said that he expects Tesla to finally show profits in the third quarter of this year.
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