Being a public company means being subjected to wild swings in stock prices (it even spiked earlier today after his tweet talking about taking the company private), and such volatility can be a "major distraction" for both Tesla's workforce and shareholders.
Officially, the SEC is fine with financial announcements on social media as long as investors are alerted to which platform they should be keeping an eye on and that no investors are given an advantage to receive the information first.
At that price, the buyout would cost almost $US72 billion, based on Tesla's outstanding stock as of July 27, but it is unlikely the deal would cost that much because Mr Musk owns a roughly 20 per cent stake in the Palo Alto, California, company. "Given his historic frustration with short sellers, analysts and certain parts of the press, it is perhaps also not surprising that he has given consideration to taking the company private", Galliers said.
Around 4AM AEST on Wednesday, trading of Tesla shares was halted for "pending news".
Going private is one way to avoid the intense scrutiny of public markets.
Tesla shares, which were already rising on news of the Gulf investor, spiked in response.
He implied that the funding values the company at $420 a share.
The Financial Times had earlier reported that Saudi Arabia's sovereign wealth fund had built a $2bn stake in the company. To take it private, the billionaire would have to pull off the largest leveraged buyout in history, surpassing Texas electric utility TXU's in 2007.
Since Tesla went public in 2010, its stock has been on a roller coaster ride, gaining nearly 2,000 percent in eight years, but also reportedly becoming at times the most shorted stock in history. The CEO said shareholders would have the final say if he decides to follow through on going private, and that he would stay in his job.
Finally, this has nothing to do with accumulating control for myself.
Last week Tesla said it had achieved its goal of producing 5,000 Model 3 vehicles per week by the end of its second quarter in June, but burned through $739.5m (£565.2m) in cash during the period in order to do it.
Baby boy dies after being pulled from NY river
CBS New York says authorities took the child from the water and rushed him to a local hospital and was pronounced dead. Police say it wasn't immediately clear why the child was in the water, and no parent or guardian was present.