Tesla short-sellers pounded as Musk tweets about going private

Tesla short-sellers took another hit on Tuesday after the electric car maker’s CEO Elon Musk tweeted that he could take the company private at $420 per share.

Shares surged as Musk’s verified Twitter account posted details about potentially becoming a private company. Tesla later posted an email from Musk to company employees in which he outlined his arguments in favor of the move and confirmed that any decision would be subject to a shareholder vote.

Traders with short positions on the company cumulatively lost more than $1.3 billion on paper in trading Tuesday. Tesla shares rose roughly 11% on the news.

Trading halted from about 2 p.m. ET to 3:45 p.m. ET, resuming just before market close.

Tesla short-sellers have now lost the equivalent of more than $2 billion so far this year. Shares spiked in recent days after the company reiterated guidance that it would become profitable by the end of 2018, even as the company burns through cash in its bid to meet production benchmarks for its flagship Model 3 sedan.

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. The Tesla CEO tweeted in July that short-sellers only had a few weeks until their positions would “explode.”