Elon Musk says he's considering taking Tesla private

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Elon Musk says he's considering taking Tesla private

Tesla resumed trading on the Nasdaq exchange after a almost two-hour pause on Tuesday afternoon, shortly after the company confirmed in a blog post that CEO Elon Musk is considering taking the electric auto maker private at $420 per share.

"Our guess is there is a one-in-three chance he can actually pull this off and bring Tesla private", Munster said.

It was not clear if Musk was serious as he has a history of erratic tweets, and the company did not immediately respond to request for comment.

When NASDAQ trading was stopped, Tesla's shares were at $366.94, a 7.3 percent gain. Beyond skyrocketing Tesla's valuation to over $70 billion at $420 a share, taking the company off of the public markets would relieve some of the pressures of having to report earnings and face volatility from traders, thus giving the company better financial footing. (Musk said in his Tesla blog post that he held a 20 percent stake.) He said that if the plan goes forward, shareholders would cast the deciding vote.

Tesla shares are up more than 5 percent at $360.64.

"The reason for doing this is all about creating the environment for Tesla to operate best", Musk, 47, wrote in an email to employees.

Asked on Twitter whether Musk would continue to be CEO under such a scenario, he replied there would be "no change". Public companies often halt trading in their stock and file official releases before making similar statements so as to minimize market jolts and abide by guidance from the Securities and Exchange Commission. Musk said he is considering taking the electric auto maker private.

Tesla and its investors are no stranger to seeing the company's share price follow a rollercoaster trajectory.

After Musk, the next largest shareholders in Tesla are the mutual fund giants T. Rowe Price and Fidelity, with stakes of more than 9% and 8%, respectively, according to Thomas Reuters Eikon.

Tesla has had more than its share of ups and downs over the past few months, due to an intense focus on production rates and sales figures for Tesla's mass-market Model 3 electric vehicle. I think he's serious. He would still allow employees to keep their shares unless they want to jettison theirs at Musk's $420 price, which he noted was 20 percent higher than the stock was as of the Q2 earnings call.

"I can't believe this is something to bluff or make fun of". However, Musk said that Tesla's leadership has yet to make a final decision.

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