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Shares of Tesla were halted in afternoon trading on Tuesday after CEO Elon Musk tweeted that he's considering taking the electric auto company private at $420 a share. The news comes as the Saudi government revealed a huge stake in the company.

The billionaire co-founder of the company took to Twitter on Tuesday afternoon to say he was "considering taking Tesla private at $420".

The firm's shares climbed more than 6% after the tweet, but the Nasdaq later halted trading pending an announcement.

Musk has repeatedly criticized Tesla short-sellers in recent months while touting the company's ability to meet production goals, despite some skepticism on Wall Street.

Several financial industry insiders were unclear why trading was halted, whether it's because Musk is trying to initiate a buyout or because he could be violating FCC regulations.

He said is considering taking the company private at $420 a share and already has secured funding.

The company's shares were up more than 5 percent at more than $360.

For current shareholders, Musk said he would institute a provision ensuring that their stock be converted into private shares, adding he would 'ensure their prosperity in any scenario'.

Tesla did not respond to a request for comment immediately.

"Details, structure, participants and how the valuation has been determined remain to be seen".

George Galliers of Evercore ISI said he believed the tweet was serious.

The outspoken CEO berated analysts in the company's first-quarter earnings call, and tried to atone for his rude behavior in the second-quarter call. Joke or no, the tweet bumped Tesla's stock even higher.

Is this a material announcement by Tesla's CEO?