Published: Tue, August 07, 2018
Markets | By Otis Pena

Elon Musk indicates taking Tesla private as he posts 'funding secured' tweet

Elon Musk indicates taking Tesla private as he posts 'funding secured' tweet

Elon Musk is considering taking Tesla Inc private, the chief executive officer of the electric vehicle maker tweeted on Tuesday.

"Yes, might take Tesla private", he said. "Funding secured", Musk said.

Some outlets are questioning whether or not the tweet came from Musk himself, but considering how Tesla's stock price reacted to the tweet (at the time of writing, it's up nearly $20 per share over its opening price), it could be just another way to keep burning the folks shorting Tesla stock, who have been the target of many Musk tweets in the past.

And according to a report by The Financial Times, Saudi Arabia's sovereign wealth fund - which is overseen by crown prince Mohammed bin Salman - has reportedly invested heavily in Tesla, building up a stake between 3% to 5%.

Tesla did not immediately respond to a request for confirmation or clarification.

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- CBS News' Jillian Harding contributed reporting. The fact that the tweet gives a specific price, and that $420 is a long-standing marijuana in-joke, makes it even more possible that this is a hoax or Musk's idea of a joke.

"Funding secured", Musk said on Twitter.

After rising as much as 8.5 percent, the company's shares gave up some of their gains.

The stock since settled at $366.94 before exchanges halted trading, pending an upcoming announcement from the company. The tweet prompted questions about how serious Musk's intentions were.

"I believe Tesla considers Tweets as public disclosure. Given his historic frustration with short sellers, analysts and certain parts of the press, it is perhaps also not surprising that he has given consideration to taking the company private", Galliers said.

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