The company's stock had been up slightly earlier in the day after the Financial Times reported that Saudi Arabia had quietly built a large stake in Tesla.
In the post, Musk said that he feels a forward-looking company such as Tesla is better off being private and avoiding the short-term thinking involved with public markets.
Earlier today, I announced that I'm considering taking Tesla private at a price of $420/share.
At midday Wednesday, Musk tweeted that he was "considering taking Tesla private at $420 per share", a premium of about $76 per share, or 22 percent more than the $344 per share where it opened the day.
By taking Tesla private, Musk believes that the company will be able to sharpen its long-term focus of revolutionizing an automobile industry dominated by fuel-combustion vehicles without having to cater to investors' fixation on how the business is faring from one quarter to the next. The company had a market value of $58 billion as of Monday's close. He also stated that this is not an attempt to assume more control over his company - Musk owns approximately 20 percent of Tesla right now, and he doesn't see that changing after the company goes private.
Once the tweet began making the rounds, stock prices surged. "I'd like to apologize for, you know, being impolite on the prior call", he said.
Before its recent rally, Tesla's share price had been in a downward spiral for much of the summer, as the company struggled to meet production targets for its midrange Model 3 sedan.More news: Suspicious black SUV circled neighborhood on night Mollie Tibbetts vanished, neighbor says
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I fundamentally believe that we are at our best when everyone is focused on executing, when we can remain focused on our long-term mission, and when there are not perverse incentives for people to try to harm what we're all trying to achieve. "Funding secured", Musk wrote in his first tweet, following up with "good morning" and a smiley emoji.
Tesla is the most shorted company on Wall Street. SpaceX is a flawless example: it is far more operationally efficient, and that is largely due to the fact that it is privately held.
"Gene Munster, a partner at the venture capital firm Loup Ventures, said that taking Tesla private "makes a ton of sense", for the following reason: "[Musk's] missions are big and make it hard to accommodate investors' quarterly expectations".
Tesla did not respond to a request for comment immediately. He cited SpaceX as an example and said it is "far more operationally efficient" because it is a private company.
Third, the intention is not to merge SpaceX and Tesla.
It contained a letter from Musk sent to Tesla employees.
Should Tesla decide to go down this route, it will need to be approved by a shareholder vote.
"My hope is all current investors remain with Tesla even if we're private", Musk tweeted.