Tesla shares soar on PIF investment, potential delisting

Shares of Tesla Inc. surged on Tuesday, after it was reported that Saudi Arabia’s sovereign wealth fund acquired 3 - 5 percent stake in the electric vehicle company.

The company's shares touched $367.25 on Tuesday afternoon before trading was halted on the Nasdaq Stock Exchange. Following resumption, trading was again suspended after CEO Elon Musk tweeted that he was considering taking the company "private."

Tesla shares closed the day, rising 11 percent to $379.57.

“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,” Musk said in an email sent to employees.

Being public also subjects the carmaker to higher scrutiny over quarterly earnings, leading to “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 added.