Tesla board evaluating Elon Musk's proposal to take company private

Tesla and SpaceX CEO Elon Musk at a SpaceX press conference in Cape Canaveral Fla. on Feb. 6 2018. More

Tesla and SpaceX CEO Elon Musk at a SpaceX press conference in Cape Canaveral Fla. on Feb. 6 2018. More

Tesla Inc.'s board confirmed it knew last week about Elon Musk's proposal to take the electric-car maker private, adding credence to the idea that this was more than a spur-of-the-moment whim from the notoriously impulsive billionaire.

"Having complex stakeholders is great", Farley said in response to a question about being public vs. private from FoxNews.com Automotive Editor Gary Gastelu at Ford's headquarters in Dearborn, Michigan. Musk, on Tuesday, announced he was mulling buying the company out for $420 per share.

"We've been in existence for over 100 years-we've always had complicated stakeholders - and that's what makes our company great and vibrant", he said.

It's possible Musk could persuade some large institutional investors to remain shareholders in the private company, which could reduce his funding needs, Sacconaghi said.

He suggested he did in an initial tweet, but so far Tesla hasn't disclosed any sources of financing, and no one has stepped forward publicly to say they're backing the plan.

Elon Musk is plotting the biggest ever attempt to take a company private, but it is unclear how he will pay for it - or if it is really worth it.

Going private is one way to avoid close scrutiny by the public market as Musk and the company face those challenges. "This included discussion as to how being private could better serve Tesla's long-term interests, and also addressed the funding for this to occur", the statement said.

He said that would allow Tesla to "operate at its best, free from as much distraction and short-term thinking as possible".

Musk's proposed move is seen as a strategy to avoid several issues: Wild stock swings, short-sellers who profit on stock value drops and shareholder pressure on quarterly performance, according to the Financial Times.

If the content of Musk's tweet was not true, lawyers argue, it could expose Tesla's mercurial chief executive officer and the company to regulatory action and private lawsuits.

Tesla stock, which has been on the rise for days, skyrocketed after the tweet and ended Tuesday up 11%. But after the markets opened Wednesday morning, Tesla's stock edged downward about 1 percent, to $375.

While Tesla's board of directors might approve Musk's idea of taking the automaker private, current shareholders have the final say. But they did not reveal who or what institution Musk may have been referring to when he posted "funding secured".

"The structure envisioned for Tesla is similar in many ways to the SpaceX structure: external shareholders and employee shareholders have an opportunity to sell or buy approximately every six months", Musk said in an email to employees Tuesday that was published on Tesla's corporate blog. The company already has a $2 billion investment from Saudi Arabia's sovereign fund as well as Tencent, which took a 5 percent stake in 2017.

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