He also tweeted that his "hope is all current investors remain with Tesla even if we're private". On April Fools' Day, amid growing concerns about the company's cash stockpile, Musk joked via tweets that Tesla had gone "so bankrupt you can't believe it". His asking price of $420 would be 22 percent of Monday's closing share price, and almost 9 percent above the stock's all-time closing high of $385.
The first tweet was posted at 12:48 pm EST stating his interest in taking Tesla private at $420 per share, and went on to say the funding to do such a thing has been secured. 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.
As a private company, Tesla would not be required to report quarterly results, freeing it from Wall Street pressure and giving the company a longer-term window to achieve Musk's goal of a renewable-energy future. CEO Elon Musk made the announcement via Twitter on Wednesday of the upcoming v9.0 update.
The stock since settled at $366.94 before exchanges halted trading, pending an upcoming announcement from the company.
Mr Musk's statement came at a time when the electric auto maker faces financial constraints, and barely a week after the company announced it had made its biggest net loss to date of $717.5m (£547.6m) during the second quarter ending in June. "The 16 per cent premium to the current share price may not be high enough to incentivise existing shareholders to support the sale".
When Musk responded to one Model 3 owner's praise for the electric auto on Twitter and mentioned the upcoming Autopilot upgrade, another person asked the CEO about the changes v9.0 would have on Model S and X vehicles.
In an interview with Bloomberg News in January 2015, he spoke of the benefits of running his closely held rocket company Space Exploration Technologies Corp. and his frustrations with having taken Tesla public in June 2010.
After rising as much as 8.5 percent, the company's shares gave up some of their gains.
Tesla didn't immediately respond to a request for comment. I wanted to let you know my rationale for this, and why I think this is the best path forward.