Elon Musk considers taking Tesla private

Musk explicitly notes that he does not intend to merge Tesla and SpaceX, and that the two companies will remain separate, even though the private-shareholder structure would be similar. If Musk can't prove the allegedly secured funding at $420 per share, he may be accused of market manipulation or market fraud.

Going private is one way to avoid close scrutiny by the public market as Musk and the company face those challenges. Musk owns almost 20pc of the company.

UPDATE 3:46 PM EST: Musk published a blog post on Tesla's website which contained an email to employees explaining why taking Tesla private may be the right move for the company.

The stock had already been heading upwards after news about a Saudi Arabian fund with a large (about 3 to 5 percent) stake in the electric auto company.

Tesla shareholders would need to vote in favor of going private before the decision is finalized, Musk concluded.

Musk has also clashed repeatedly with critics, especially investors who have taken short positions on the stock, meaning they benefit when the price falls.

Tesla did not return repeated calls for comment from CNBC, nor did the Securities and Exchange Commission, as of this publishing. They were later halted for news pending.




DON'T MISS: Analysis: Did Tesla's earnings call and stock surge save Musk and skip skeptics?

Despite the unfolding media "shitshow", Musk still seems to view privatization as an "enormous opportunity for us all".

For current shareholders, Musk said he would institute a provision ensuring that their stock be converted into private shares, adding he would 'ensure their prosperity in any scenario'. Musk has vowed that the company will start turning a regular profit in the second half of this year.

Tesla reported an adjusted loss per share of $3.06 for the second quarter, which was larger than what analysts had predicted, and revenue of $4 billion, which beat analyst projections. Prices seesawed in the range of $360 to $370, a roughly 7 to 8 percent rise for the day, while investors tried to decide whether Musk was joking. Will be way smoother & less disruptive as a private company.

It is far from the first time Musk has dropped a financial bomb to his 22 million Twitter followers.

However, he concedes Musk has good reason to take Tesla off the public markets, and he's established precedent through SpaceX and The Boring Company.

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.

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