As a direct result of Musk's $420 tweet, share values started fluctuating.
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.
Mr Musk's statement came at a time when the electric vehicle maker faces financial constraints, and barely a week after the company announced it had made its biggest net loss to date of $717.5m (£547.6m) during the second quarter ending in June.
In another tweet later in the day, Musk assured his vast network of followers that Tesla would remain loyal to those that had supported the company on the journey to where it was today.
The company is now valued at just over $60 billion, with Musk holding an nearly 20 percent stake in the company. It's not hard to imagine the gyrations that Tesla's stock would go through if Musk's plan was scrapped or substantially changed. Either they can stay investors in a private Tesla or they can be bought out at $420 per share, which is a 20% premium over the stock price following our Q2 earnings call (which had already increased by 16%).
There's also a question of the funding Musk claims he has "secured". Bloomberg reports that if Musk managed to scrape together the cash to go private, it would be the largest leveraged buyout in history.
After Musk, the next largest shareholders in Tesla are the mutual fund giants T. Rowe Price and Fidelity, with stakes of more than 9% and 8%, respectively, according to Thomas Reuters Eikon.
Tesla did not immediately respond to a request for comment.
Earlier, it was learned that Tesla had secured a $2 billion investment from Saudi Arabia's sovereign wealth fund. Reports of the PIF stake have pushed Tesla stock to a session high, surging 6.59% to 364.54 at the time of publication.
Yes, Elon Musk is serious about wanting to take Tesla private for $420 a share. The company had a market value of $58bn as of Monday's close.
The 11 percent jump in Tesla's stock price following Musk's public musings on possibly buying the company from existing shareholders drove $2.3 billion of convertible debt past the level at which investors can swap them for stock at a profit.
This is especially true for a company like Tesla that has a long-term, forward-looking mission.
Musk's tweet isn't a clear violation of SEC rules, but it could be if it was explicitly meant to boost Tesla's price.
Musk's relationship with shareholders and analysts has been rocky, to say the least. Investors saw it as a vote of confidence that the Silicon Valley company could meet its ambitious growth plans and sent the stock up over 7% to an intraday high of $371.15.
But the market appeared to take him seriously with Tesla shares surging on the news.
Mr Musk has long raged against short sellers and mentioned his desire to be rid of them as one of his reasons for taking Tesla private.