A leveraged buyout of this size - one using debt - would eclipse by a wide margin the prior record, the purchase for utility TXU Corp.in 2007 by a consortium that included KKR and TPG for US$44 billion. "Funding secured", Musk tweeted at 12:47 p.m. - with Tesla shares trading hands at about $356.67.
The billionaire Musk, who owns about 20 per cent of the company, said a transaction would not "substantially" alter his stake and that he expected to continue to lead the company if it occurred. And the fact that the company has been burning through cash, and even asking suppliers to refund payments might make such a buyout fairly unlikely. Taking Tesla out at $420 would make that promise true, and put Tesla's funding under less scrutiny. "Funding secured", Musk tweeted in early afternoon.
The Financial Times had earlier reported that Saudi Arabia's sovereign wealth fund had built a $2bn stake in the company. 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".
Musk added that the goal is not to merge SpaceX and Tesla.
VideoJamie Albertine, Consumer Edge Research senior automotive analyst, discusses Tesla Inc.
Tesla stock soared Tuesday afternoon amid rumors that CEO Elon Musk might take the electric vehicle and solar power generation company private. That baseless tweet was quickly deleted and Mr Musk apologised to the diver.
"The market doesn't believe him", said David Kudla, the CEO of Mainstay Capital Management, which is betting against Tesla. Although it's unusual for a chief executive to make such a major announcement over social media, it does not appear to be improper. "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.More news: Trump admits son met with Russian to get information on opponent
Camera IconTesla's existing shareholders could be given the option of retaining a stake in the company through a special fund. It contained a letter from Musk sent to Tesla employees.
Shares finished up 11 per cent at US$379.57 after being suspended for about 90 minutes following a series of Musk statements on Twitter in which he initially floated the idea of going private. Mr Musk's offer is 9 per cent higher than Tesla's peak closing price of $US385 reached almost a year ago.
Bullish on the performance and increased production of "Model 3" cars, Tesla CEO Elon Musk is now planning to introduce a mini-car.
Making money has proven elusive for Tesla while it has been investing in electric auto technology and ramping up production of its vehicles, including a sedan with a starting price of $US35,000 to appeal to a broader audience.
Musk detailed his proposal in a blog post on the company's website Tuesday, hours after stunning the company's followers by casually tweeting that he might take it private.
Tesla has been public since it filed an IPO in 2010. But Musk says that's not what he's expecting for Tesla. He said he hoped all current investors would remain were the company to go private.
Gene Munster, managing partner at Loup Ventures and a top tech analyst, said the odds that Musk will take Tesla private were about one in three. What do his latest tweets mean for the future of Tesla? Here are a few things he gains by taking Tesla private. Finally, as the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company. "People will shake their heads and say, 'that's Elon"'. "He will live to see another day".