Elon Musk tweets about going private and shares 'skyrocket'

The Twitter account of Tesla Inc.

Tesla CEO Elon Musk announced Tuesday that he is considering taking the electric auto maker private, causing the company's stock to spike.

Elon Musk sent shares of Tesla into a frenzy on Tuesday, when the billionaire inventor wrote in an unconfirmed tweet that he's considering taking the auto company private, and has already secured the funding - language he should be sure to follow through on, according to Scott Galloway. "Funding secured", Musk tweeted, following up with "good morning" and a smiley emoji.

Tesla did not respond to a request for comment immediately.

"It's not easy to take a company that's losing money private", Galloway said.

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At a share price of $420, Electrek points out that taking Tesla private would be a costly decision, to the tune of some $70 billion.

Tesla went public in 2010, when it offered more than 13 million shares at $17 each.

Musk's other company, aerospace firm SpaceX, is privately owned. The company had a market value of $58bn as of Monday's close. The stock had been worth about $342 a share before Musk's tweet.

The tweets have added to speculation about Tesla, which is spending heavily as it ramps up production of its latest auto, the Model 3. The tweet prompted questions about how serious Musk's intentions were. Much of that increase was driven by an earlier report that Saudi Arabia's sovereign wealth fund has bought $2 billion in Tesla stock, representing a 3-5% stake in the company.

Tesla (TSLA) has burned through cash while struggling to produce its Model 3 cars.

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