KEY POINTS
  • Tesla CEO Elon Musk's tweet on considering taking the company private drove the company's share price on Tuesday above its $920 million convertible debt's conversion price, potentially reducing future cash obligations for the company.
  • The company's stock Tuesday closing price of $379.57 is 5.5 percent above the $359.87 conversion price for Tesla's $920 million convertible debt due in March 2019, according to a securities filing.
Elon Musk, Co-founder and CEO of Tesla

Tesla's big stock rally after a tweet from CEO Elon Musk that said he is considering taking the company private put an important convertible bond above its conversion price, potentially easing financial pressure on the carmaker.

Tesla shares surged 11 percent Tuesday after a tweet from Musk's verified Twitter account that mentioned taking the company private at a $420 per share price.