"Earlier today, I announced that I'm considering taking Tesla private at a price of $420/share". 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.
Musk later clarified in a blog post that "a final decision has not yet been made", while touting the benefits of running a private company away from the "enormous pressure" of Wall Street's quarterly earnings cycle.
Musk took Tesla shareholders and the stock market by surprise on Tuesday by announcing on Twitter he was considering taking the loss-making electric car-maker private at $420 United States a share.
Teresa Goody, a former SEC official, said Musk "did something inappropriate and caused chaos in the market" in a way that would likely draw scrutiny from investigators.
"Finally, this has nothing to do with accumulating control for myself".
Musk hasn't been quiet about his disdain for short sellers.
JPMorgan analyst Ryan Brinkman said he gave only a 50 per cent probability that Tesla would go private.
The oil-rich kingdom of Saudi Arabia's investment fund has gobbled up a multibillion-dollar stake in the company in recent months, the Financial Times reported Tuesday, but Tesla has not answered questions about the involvement of the kingdom, or anyone else, in how he would finance the company's exit from public markets. "How could Tesla possibly fund such a large transaction?"
Taking Tesla private would also free Musk from his tumultuous relationship with Wall Street as a whole, which had been consuming a significant portion of his time as well as a significant amount of all news surrounding the automaker. And as the stock price has climbed this year, so too have the bets against it.
Shares of electric car-maker Tesla opened slightly lower on Wednesday, one day after a proposal to go private pushed the company's stock near an all-time high.
"It's very hard to put leverage on this company", due to its negative cash flow and "operational issues", Scott said Wednesday on Bloomberg Television.
The board members said they were "taking the appropriate next steps" to evaluate the proposal. "And if you stay as a shareholder you get less information than before and you depend more and more on Elon Musk".