Musk, in a tweet, had denied a New York Times report that said he was planning to lay off Twitter employees before Nov. 1 to avoid stock grants due on the day.
Twitter General Counsel Sean Edgett emailed employees on Thursday saying the company does not plan layoffs, according to a source who viewed the email.
Musk described Twitter as an asset that had "languished" for a long time. "Myself and the other investors are obviously overpaying for Twitter right now. The long term potential for Twitter in my view is an order of magnitude greater than its current value," he said.