After a mere eight years of public availability, Tesla CEO Elon Musk said on Tuesday he’s considering taking the electric car company private.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
The Company’s stock was trading at about $355 a share before Musk’s tweet. It jumped about 5 percent after the tweet.
“The reason for doing this is all about creating the environment for Tesla to operate best,” Musk wrote. “As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders.”
Trading of Musk’s company shares resumed after the company published the statement and the stock closed at $379.57, up nearly 11 percent for the day.
Musk said he will give shareholders a choice: either remain investors in a private Tesla, or sell their stock for $420 per share, a 20 percent premium over the price at the time of the company’s recent quarterly earnings call.
“This has nothing to do with accumulating control for myself,”Musk said. “I own about 20% of the company now, and I don’t envision that being substantially different after any deal is completed.”