Tesla CEO Elon Musk tweeted that he is considering taking his company private once shares reach $420, according to Bloomberg.
In an email to all Tesla employees, Mr. Musk said converting the company from publicly traded to privately owned would remove a level of scrutiny that can become a distraction.
"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," Mr. Musk wrote. "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."
Mr. Musk said all shareholders would have the choice to either retain their shares of Tesla or sell them. The proposed sale price of $420 per share would value Tesla at $71 billion, and shareholders would vote on the proposal to go private.
"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," Mr. Musk wrote. "Either way, the future is very bright, and we’ll keep fighting to achieve our mission."
The U.S. Securities and Exchange Commission has reportedly made inquries into Mr. Musk's plan, according to CNBC.