Tesla Stock Surges as Musk Says May Take Company Private

Tesla (TSLA) shares jumped on Tuesday after co-founder Elon Musk tweeted that he was considering taking the electric-vehicle maker private.

“Am considering taking Tesla private at $420. Funding secured,” the company’s chief executive officer said from his Twitter account. The shares were recently trading at $360.99.

Musk, who often engages with both supporters and detractors on social media, didn’t offer any more details. Responses to Musk’s tweet piled up quickly, with many speculating about the seriousness of the note given the price of $420 — a number that’s widely seen as a reference to cannabis culture. Musk later tweeted, “Good morning,” along with a smiling face emoticon.

Tesla’s stock was already stronger after the Financial Times reported that the Saudi Arabian sovereign wealth fund had built a $2 billion stake in the company, for a position of about 3% to 5%.

Ross Gerber, co-founder of Gerber Kawasaki Wealth and Investment Management, said on Twitter Musk could raise $60 billion “no problem from foreign sovereign funds and the vision fund.” The Vision Fund from SoftBank invests in businesses “seeking to enable the next age of innovation,” according to its website.

“Maybe Tesla thinks it is better off not dealing with public markets,” Gerber said. “Why does this surprise anyone?”