Elon Musk explains why he's thinking about taking Tesla public

Elon Musk tweet 'Am considering taking Tesla private at $420. Funding secured'

Because 420 is the universal number indicating it's time to smoke some weed, it was easy to laugh off Musk's tweet as just one of his weird jokes. He later tweeted that the only uncertainty about completing the deal is whether he can gain shareholder approval. Per CNBC, no major Wall Street banks have committed to finance a deal to take Tesla private, though a Financial Times report even earlier Tuesday suggests Saudi Arabia might have the gumption ― and the means ― to make it happen. Musk, however, has been promising investors he won't have to dilute current shareholders by issuing more stock, and given how Tesla's bonds have performed since they were issued, debt might not be an option either.

That left the market capitalisation of Tesla, which has been experiencing production difficulties and recently asked suppliers to refund some payments, at around $64bn.

As the matter unfolds, some are questioning whether or not the tweets are authentic.

Shares soared on the news, were then halted for trading by the Nasdaq at 2:08 pm ET and resumed trading at 3:45 pm ET, in tandem with a company blog on the news.

The SEC has a social media policy, but it appears he would still need to properly file notices.

Camera IconTesla boss Elon Musk with the new Roadster. "This is not how you do it and it makes you wonder how seriously to take it", said Erik Gordon, a business and law professor at the University of MI.

Last month, Musk attacked British diver Vern Unsworth, who had dismissed the Tesla chief's efforts to help the rescue mission for the 12 boys as a "PR stunt" in a widely seen interview on CNN.

Musk's other company, aerospace firm SpaceX, is privately owned. "The use of the specific price for a potential going private transaction is highly unprecedented".

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

"If his comments were issued for the goal of moving the price of the stock, that could be manipulation".

The company has only posted a quarterly profit twice in its history and has never made money during an entire calendar year, something that Musk has been trying to change by cutting costs, including recent mass layoffs that trimmed Tesla's workforce by 9 percent. He clashed with analysts on a contentious call after Tesla reported earnings three months ago. "Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term".

Tesla Motors started selling its stock to the public in 2010 - the first initial public offering of a USA automaker in more than a half-century. The company underwent an initial public offering in 2010. Investors saw it as a vote of confidence that the Silicon Valley company could meet its ambitious growth plans and sent the stock up over 7% to an intraday high of $371.15.

The news caused Tesla's share price to jump by $14.

"Am super appreciative of Tesla shareholders", Musk said.

When another person tweeted that going private "saves a lot of headaches", Mr Musk replied, "Yes".

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