Elon Musk details taking Tesla private, says final decision is pending

Following a tweet earlier today mentioning as much, Tesla CEO Elon Musk has published an email previously sent to employees that details potential plans about going private. News about the idea first surfaced this afternoon on Twitter via Musk, who tweeted, "Am considering taking Tesla private at $420. Funding secured." He has since tweeted updates, saying the company has confirmed that it has investor support for the plan.

READ: Tesla hit major Model 3 production milestone in Q2 2018

Musk expounded on the idea in an email sent to Tesla employees today, which has since been published on the Tesla website. In it, Musk notes that a "final decision hasn't been made," the reason for which is that it is contingent on a shareholder vote, he later added in a different tweet.

In the email, Musk said taking Tesla private would be "all about creating the environment for Tesla to operate best." In laying out the reasoning behind the plan, Musk explains:

As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders. Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term. Finally, as the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company.

Musk points toward SpaceX, saying that it being private greatly contributes to it being "far more operationally efficient." He also notes that Tesla would likely go public in the future after entering a "phase of slower, more predictable growth." Musk says he wants all shareholders to stick with the company, but under his plan, they could be bought out at $420 per share — that is, at 20-percent over the stock price.

Tesla shares were halted for about an hour today following Musk's tweets, with some questioning whether the public statements violated trading laws. According to one tweet, the company has secured funding for the change, but no details about the funding source were provided.