Updated: Elon Musk considering taking Tesla private, TSLA stock trading halted
Update: 3:53 pm EST: Tesla stock is now trading again. It opened today at $341.99 and is up 10.61 percent at $378.26 currently.
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Update 3:44 pm EST: Tesla released a statement that was emailed to employees earlier today laying out the potential of taking Tesla private at $420 per share in a bid to insulate the company from news fluctuations on its capital. The change would be in an effort to focus on executing on the automaker's long-term vision of sustainable transportation.
Musk laid out that he currently holds "about 20 percent of the company now" and he does not see that changing regardless of whether Tesla remains public or goes private.
The decision whether to stay public or go private will be determined by current shareholders.
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Elon Musk shook both the Internet and financial industry Tuesday as the man in charge of Tesla [NYSE: TSLA] tweeted about taking Tesla private and buying back the stock at $420 per share.
The first tweet was posted at 12:48 pm EST stating his interest in taking Tesla private at $420 per share, and went on to say the funding to do such a thing has been secured.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
Immediately the automaker's stock jumped from its $341.99 opening price.
ALSO SEE: Elon Musk says future Teslas will be like K.I.T.T. with AI
Just under two hours after posting the Tweet about potentially going private, Musk took to Twitter again saying shareholders could either sell at the $420 price or hold onto the shares as the automaker goes private.
Shareholders could either to sell at 420 or hold shares & go private
— Elon Musk (@elonmusk) August 7, 2018
Trading was then halted on the stock market around 2 pm EST according to The Washington Post.
Several financial industry insiders were unclear why trading was halted, whether it's because Musk is trying to initiate a buyout or because he could be violating FCC regulations.
While volume can stop trading, it's highly unlikely volume caused trading to be halted today because Tesla has historically had higher volume days than it was having on August 2, 2018.
This story is still developing and will continue to be updated.
