Tesla Inc (Nasdaq: TSLA ) closed nearly 11 percent higher on Tuesday after CEO Elon Musk tweeted that he is considering taking Tesla private at a price of $420 per share. Tesla stock was briefly halted on Tuesday afternoon until the company issued a statement on the potential offer, but Tesla’s closing price suggests there is still plenty of market skepticism about the deal.

“Am considering taking Tesla private at $420. Funding secured,” Musk tweeted at 12:48 p.m. Tuesday afternoon.

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After TSLA stock initially spiked following the tweet, some investors began to question whether or not Musk was joking about the offer due to the price of $420 per share and the number 420’s association with marijuana. A follow-up tweet from Musk posted roughly 30 minutes later said simply “Good morning” with a smiley face emoji.

However, Musk’s subsequent tweets indicate that the offer is legitimate. Musk says he would create a special-purpose fund that would enable Tesla investors to maintain their investment in the company even after it is private. Musk said private company SpaceX has a similar setup for investors.

“Shareholders could either [choose] to sell at 420 or hold shares & go private,” Musk tweeted. “Am super appreciative of Tesla shareholders. Will ensure their prosperity in any scenario.”

In an email sent to Tesla employees on Tuesday, Musk said “a final decision has not yet been made.”

A price of $420 per share would value Tesla at around $71 billion, making the potential leveraged buyout one of the largest in Wall Street history.

Tesla’s lofty valuation and production struggles have made it a popular target for short sellers, and Tesla currently has the largest outstanding short position of any U.S. stock.

Ihor Dusaniwsky, an analyst at financial technology and analytics firm S3 Partners, says Tesla short sellers’ year-to-date losses could balloon to nearly $4.5 billion if the company goes private at $420 per share.

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“If the market believes that Elon Musk’s financing is in place and the chances of a buyout is high, we should see short covering in size, driving Tesla’s stock price higher in the short term as short sellers attempt to close out their positions at lower than the $420 takeout price,” Dusaniwsky says.

However, Tesla stock finished Tuesday’s session at $379.57, suggesting skepticism that a deal will be completed at the $420 price.

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