This is unbelievable.

Two hours after tweeting about the possibility of taking Tesla (TSLA - Get Report) private for $420 a share, the company released a letter Musk wrote to employees about the plan. 

"First, a final decision has not yet been made, but the reason for doing this is all about creating the environment for Tesla to operate best," Musk said. "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."

Tesla shares rose 10% Tuesday to $377.39 per share. The stock remains 11% below Musk's $420 privatization level.

TheStreet says a private Tesla makes sense for at least three reasons:

  • Musk has big dreams for Tesla, ranging from semi trucks to sports cars to giant battery factories. That expansion is best done not having to worry about the stock price.
  • Musk likely realizes profits will remain elusive for Tesla, despite his assertions to the contrary. 
  • Musk also likely realizes he will need to raise money, again despite his assertions, to fund his big dreams.
Read more on Tesla's future from TheStreet