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Tesla CEO Elon Musk tweeted Tuesday that he’s “considering” taking the electric car company private — and that he has funding for his plan already secured.
Tesla Inc. shares rose sharply right after Musk sent the tweet shortly before 1 p.m. ET, adding more than 5 percent to the company’s value in a matter of minutes.
With the increase, Tesla shares were trading at around $362 per share, still well below the $420 level Musk said he is considering.
Tesla did not immediately respond to a request for comment.
Musk’s tweet comes days after the independent automaker announced it had burned through about $739.5 million in cash last quarter and suffered a company record $717.5 million loss.
In a conference call with analysts, he said Tesla would refrain from going back to the markets to boost its capital and instead become “essentially self-funding.” The company is counting on sales of its Model 3S, which starts at $35,000 and is Tesla’s first midsize car, to help drive up profits.
Musk remains Tesla’s largest shareholder. In June, the billionaire CEO bought about $25 million worth of stock and owned about 19.8 percent of the entire company, according to reports.
Musk is a frequent Twitter user and known for his maverick style, though his recent statements have caused some concern among investors. He recently accused a British man involved in the rescue of a youth soccer team trapped in a flooded Thai cave of pedophilia.
He also apologized last week after slamming analysts during a conference call last quarter for asking what he said were “dry” questions. “Boring, bonehead questions are not cool. Next?” Musk said at the time.
This is a breaking news story. Please check back for updates.