FILE PHOTO: Tesla Motors Inc Chief Executive Elon Musk pauses during a news conference in Tokyo September 8, 2014. REUTERS/Toru Hanai/File Photo

(Reuters) - Tesla Inc Chief Executive Officer Elon Musk said on Tuesday in a letter to employees that he is considering taking the electric car maker private at a price of $420 per share.

Musk said a final decision has not yet been made, but the reason is to create an environment for Tesla to operate best.

"As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders," Musk wrote in the letter here.

Trading in the company’s shares were halted at $367.25, up 7.4 percent, after Musk tweeted earlier that he was considering taking the company private at $420 per share.