Marketwatch now lists Telsa's market cap at a little over $US58 billion ($78 billion).
"Our guess is there is a one-in-three chance he can actually pull this off and bring Tesla private", Munster said. Because Tesla was "the most shorted stock in the history of the stock market", and quarterly earnings putting "enormous pressure" on the exponentially growing company, Musk suggests it might make more sense to trade stock privately for the time being.
At that $US420 per share, a deal would be worth $US72 billion overall.
Shares were halted on the Nasdaq shortly after the story broke, citing "pending material news" from the company.
When another person tweeted that going private "saves a lot of headaches", Mr Musk replied, "Yes".
On Sunday, he Tweeted a link to a parody of a movie about Adolf Hitler aimed at short-sellers, writing, "Dang, turns out even Hitler was shorting Tesla stock". "I'd like to apologize for, you know, being impolite on the prior call", he said.
Despite its challenges, Tesla has remained a favourite among many investors, partly due to their faith in Mr Musk, who made his initial fortune as a co- founder of PayPal and also is the chief executive of a trail-blazing aerospace company, SpaceX, that's already private. He added: "I can't believe this is something to bluff or make fun of". "His mission for Tesla (to accelerate the globe's adoption of sustainable energy) is both grand and long-term, making it hard to accommodate investors quarterly expectations".
After his initial tweet, he followed up several times when answering questions from users on the platform. This is partially because Musk has resisted selling new shares this year, to the chagrin of Moody's rating agency.
While Mr Musk has previously discussed the drawbacks of being a public company, he has also used his Twitter account in ways that surprised investors. Musk also pointed this out in his letter. SpaceX is a flawless example: it is far more operationally efficient, and that is largely due to the fact that it is privately held. Musk has complained repeatedly about short-sellers, who profit when Tesla stock drops. They would continue to have separate ownership and governance structures. Those who stay onboard would be able to sell shares or execute stock options approximately every six months. It was stake of about $1.9 billion to $3.1 billion, or 3-5 percent of Tesla shares, at current share prices. "Funding $50 billion plus for a negative free cash flow business would be hard, if not extraordinary". "The use of the specific price for a potential going private transaction is highly unprecedented". "It's been in free-fall ever since the [SolarCity] acquisition and since then all they've done is cut sales channels, cut marketing, and lay off hoards of people".
Will Wall Street concur that Tesla finally, after 15 years, has a financially sustainable business? Will be way smoother & less disruptive as a private company. The company with the highest short interest among any American firm has been criticised for burning through cash. It is also the only auto maker building cars (some of them) under a tent, as Tesla strains to crank out cars for Model 3 buyers in the waiting line to buy and collect tax credits.
The whole thing isn't yet set in stone because it must be put to a shareholder vote.