Business Corpus: Tesla Stock Jumps, Then Halted, As Elon Musk Tweets About Going PrivateTrading in Tesla stock was halted Tuesday, about an hour after Chief Executive Elon Musk tweeted that he was considering taking the company private at $420 a share, or about $70 billion, and maintained he has the funding. The post Tesla Stock Jumps, Then Halted, As Elon Musk Tweets About Going Private appeared first on Investor's Business Daily.

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Trading in Tesla stock was halted Tuesday, about an hour after Chief Executive Elon Musk tweeted that he was considering taking the company private at $420 a share, or about $70 billion, and maintained he has the funding.

"Am considering taking Tesla private at $420. Funding secured."

— Elon Musk (@elonmusk) August 7, 2018

Musk is the largest shareholder in Tesla.

At 420 a share, that's a 19% premium from where Tesla stock currently trades. Shares of Tesla (TSLA) were up 7.4%, near 367.25 during afternoon trading on the stock market today.

Trading in Tesla stock was halted shortly after 2 p.m. ET, about an hour after Musk's tweet of taking the company private.

No Controlling Vote

The tweet was preceded by a report from Financial Times that the Saudi Arabia Public Investment Fund, a sovereign wealth fund, has built a stake in Tesla somewhere between $1.7 billion and $2.9 billion, or between 3% and 5% in the electric vehicle automaker. The stake was believed to be have been built up after Saudi Prince Mohammed bin Salman toured the U.S. in March.

The Financial Times report said the Saudi Arabia fund initially approached Musk about purchasing newly issued shares. Musk reportedly rebuffed the offer.

In a follow-up question from Fred Lambert, editor of Tesla follower Elektrek, he asked if Musk can confirm if he would retain control over the company, as opposed to an outright sale.

Musk replied:" I don't have a controlling vote now and wouldn't expect any shareholder to have one if we go private. I won't be selling in either scenario."

Musk has previously said he would like to take Tesla private, in an interview with Rolling Stone that was published in November 2017.

Tesla reported second-quarter earnings on Aug. 1 that showed another loss but exceeded revenue forecasts and also defied skeptics in key areas, including Model 3 production.

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