Elon Musk shakes Tesla investors, fans of the company with one tweet

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Tesla CEO Elon Musk shook investors and fans of the company with one tweet, saying he's considering making the company private. (Photo by Charles Sykes/Invision/AP, File)

Tesla CEO Elon Musk shook investors and fans of the company with one tweet, saying he's considering making the company private.

Reaction was swift and severe, both on social media and on Wall Street.

Trading of Tesla stock was halted. It then closed up $37.58, at $379.57 a share.

RELATED: Elon Musk tweets he may take Tesla private and shares roar

It was a shocking announcement from Musk, proposing one of the biggest buyouts in U.S. history, saying via Twitter, "Am considering taking Tesla private at $420. Funding secured."

Musk says he wants the company to operate at its best, free from as much distraction and short-term thinking as possible.


"Peace of mind to be able to improve his production capacity at his Fremont operations," said San Jose State University College of Engineering Prof. Fred Barez, Ph.D.

Barez, director of the hybrid and electric vehicle tech lab at San Jose State, says it makes sense. "If you're a private company, you're not going to be scrutinized by the public, or analysts on a daily basis or weekly basis or monthly basis or a quarterly basis," he said.

RELATED: Tesla reports record $717.5M net loss in earnings report

Some wondered if it was a joke. But at one point, the confusion even prompted regulators of the Nasdaq stock market to temporarily suspend trading in Tesla's stock until Musk released a memo clarifying his tweet.

In it, he wrote, "This proposal to go private would ultimately be finalized through a vote of our shareholders. If the process ends the way I expect it will, a private Tesla would ultimately be an enormous opportunity for all of us."

However, experts say the buyout could lead to questions about whether or not Tesla is truthful in the long run.

Dr. Anat Admati, director of the Corporations and Society Initiative at Stanford University, asked, "If he was comfortable answering all these questions, and if people didn't have all these doubts about what's going on there, and whether he can deliver what he said he'd deliver, then why would he need to do this exactly?"

RELATED: Tesla fends off reports that customers are canceling Model 3 pre-orders

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