Shares in Tesla were up sharply following the tweet, trading at $363 at the time of writing. The stock was up Tuesday after the Financial Times reported that Saudi Arabia had taken a $2 billion stake in the electric auto company.
Musk's surprise announcement comes as the Financial Times revealed that a fund controlled by the Saudi Arabian government holds a stake of between three and five percent 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".
On April Fool's Day, Mr Musk joked on Twitter about Tesla going bankrupt.
Israel stops activist vessel, detains passengers; Gaza teen dies from Israeli fire
Meanwhile, a delegation of Hamas leaders living overseas is visiting Gaza to hold a meeting with Hamas leaders in the Strip. The Kerem Shalom border crossing would then be opened, allowing the transfer of essential supplies from Israel to Gaza.
"Funding secured", the tweet added, offering no further details on where the funds would come from or when.
Short interest in Tesla on Monday stood at almost $12 billion, equivalent to 28 percent of its float, according to S3 Partners, a financial analytics firm.
Tesla did not respond to a request for comment immediately.
"I can't believe this is something to bluff or make fun of".