Published: Tue, August 07, 2018
Economy | By

Elon Musk considering taking Tesla private

Tesla CEO Elon Musk says he is considering taking the electric vehicle maker private.

"Am considering taking Tesla private at $420".

The BBC has been unable to verify the post was written by Mr Musk himself, but it has pushed the shares 6% higher. The company had a market value of $58 billion as of Monday's close.

At a share price of $420, Electrek points out that taking Tesla private would be a costly decision, to the tune of some $70 billion.

"Funding secured", the tweet added, offering no further details on timing or source of funding.

A spokesman for Tesla did not immediately return a request for comment. Musk owns approximately 20 percent of those outstanding shares, which would lower the price tag a bit, but it would still be pretty hefty.

"I believe Tesla considers Tweets as public disclosure. Plus this is short squeeze rocket fuel after a nice quarter", said analyst Chaim Siegel from Elazar Advisors. Shares are up as high as 9% on the day.

While Musk is known for making erratic tweets, he tweeted "420" in a reply to Fox Business anchor Liz Claman, following up on his initial tweet.

Tesla (TSLA) has burned through cash while struggling to produce its Model 3 cars.

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