Tesla stock jumps 10% after trading halt

Tesla CEO Elon Musk.					Robyn Beck  AFP  Getty Images

Musk, who has previously discussed possibly taking Tesla private, has had bumpy relations with Wall Street, often dismissing questions over financing. The numbers from the report indicate that the PIF, which has more than $250 B in assets, has a stake of between $1.7 B and $2.9 B at Tesla's current share price.

Musk, the CEO and largest shareholder, said on Twitter that the private funding valued Tesla at $420 per share.

It appears that Musk is hopeful that shareholders will simply hang in for the ride and willingly go private. It zoomed as high as $371 per share before trading was halted at $367 per share just after 2 pm EDT. It finished up 11%, at $379.

Tesla did not respond to a request for comment immediately. This is partially because Musk has resisted selling new shares this year, to the chagrin of Moody's rating agency. "Very similar to how Donald Trump communicates with his constituents, going outside the norm", said Giles.

And finally, he maintains that going private isn't about accumulating control for himself: "I own about 20% of the company now, and I don't envision that being substantially different after any deal is completed", Musk wrote. "Funding secured", he said.

Musk made the out-of-the-blue announcement in a series of tweets, saying he'd already secured funding for the take-private transaction.

He pledged to hold on to his stake in the company, about 20%, no matter what. BMM Bloomberg reports that the PIF is now one of Tesla's top 8 shareholders.

That said, Musk and Tesla don't fit any historic templates for CEOs or auto companies.

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The goal, Musk added, was not to tighten his grip on Tesla. As Twitter exploded, Tesla representatives, usually quick to answer reporters' calls, remained silent.

"Given his historic frustration with short sellers, analysts and certain parts of the press, it is perhaps also not surprising that he has given consideration to taking the company private". The rally falling well short of $420 is a sign of market skepticism that Musk's plan is feasible.

"His mission for Tesla (to accelerate the globe's adoption of sustainable energy) is both grand and long-term, making it hard to accommodate investors quarterly expectations", he wrote.

In a blog post on Tesla's website, Mr. Musk said taking Tesla private, in what analysts expect could be the largest leveraged buyout in US history, would allow the company to ignore the pressures of the stock market and focus on long-term plans. He added that in the future, when Tesla reached a "phase of slower, more predictable growth", the firm could go public again. The company said it expects to be profitable during the second half of 2018.

Musk has a long history of bristling at the amount of scrutiny Tesla endures from investors and media. Netflix stock moved higher as a result.

Munster figures that there is a one-in-three in chance that Musk "can actually pull this off and bring Tesla private". In other words, his tweet had real market implications. The tweet was apparently an April Fool's joke.

Tesla CEO and founder of the Boring Company Elon Musk spoke at a news conference, June 14, in Chicago. Chinese tech giant Tencent owns nearly 5%.

Did Elon Musk violate any securities regulations, particularly Reg FD [Fair Disclosure], which according to the Securities and Exchange Commission, prohibits selective disclosure of material information?

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