Tesla board says Musk started going-private talks last week

Flags fly over the Tesla Inc. Gigafactory 2 which is also known as RiverBend a joint venture with Panasonic to produce solar panels and roof tiles in Buffalo New York

In a statement on Tesla's website on Wednesday, six of Tesla's nine directors said the board had met several times over the last week to discuss the idea and was "taking the appropriate next steps to evaluate this".

Other board members mentioned in the statement included Robyn Denholm, Ira Ehrenpreis, Antonio Gracias and Linda Johnson Rice.

Most analysts were skeptical, but some said a deal could materialize if Musk succeeded in lining up the right funding.

The statement by the board, published by NASDAQ, confirms that the proposal is under serious consideration. In a note to clients, Bernstein analyst Toni Sacconaghi asked: "What does Musk mean by "funding secured"?"

Tesla CEO Elon Musk tweeted Tuesday that he's is mulling taking Tesla private at US$420 a share.

Tesla's shares were down 2.1 percent at $371.70 on Wednesday after closing up 11 percent on Tuesday.

In that time, Tesla short-sellers - Musk's sworn enemies - may have lost more than $800m, according to estimates from financial-technology firm S3 Partners, while his 20% stake reportedly gained $851m. And as the stock price has climbed this year, so too have the bets against it.

China's Tencent Holdings Ltd, which took a 5-percent stake in Tesla past year, could also be a possible partner.

The oil-rich kingdom of Saudi Arabia's investment fund has gobbled up a multibillion-dollar stake in the company in recent months, the Financial Times reported Tuesday, but Tesla has not answered questions about the involvement of the kingdom, or anyone else, in how he would finance the company's exit from public markets. This proposed route would also keep all Tesla employees as shareholders/investors in the company, while Tesla would adopt an ownership and governance structure similar to the current form of SpaceX.

It's also unclear how Musk came up with the $420 price.

Two of the potential stumbling blocks to Musk's plan include the stock price premium not being enough to get the existing shareholders on board to support the sale and coming up short on the announced funding to complete the transition.

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.

Related News:

  • China tests hypersonic nuclear warhead

    China tests hypersonic nuclear warhead

    The aim is to make trajectories unpredictable so that it is much more hard for anti-missile defences to find, track and intercept them.
    D.C.-area forecast: Hot and humid, with storm chances increasing Wednesday

    D.C.-area forecast: Hot and humid, with storm chances increasing Wednesday

    We should get a break from the rain in the afternoon before another round of showers and storms materialize in the evening. While no severe weather is expected, some storms still could produce some heavy rain and gusty winds reducing visibility.

    Rick Gates Forced Into Admitting Extramarital Affair by Paul Manafort’s Lawyer

    This time, however, Manafort himself provided Gates the template to be used for vendor payments, according to the witness. On Tuesday, Gates did connect one part of the bank fraud charges against Manafort to his role in the Trump campaign.
  • More details of Lauda's condition after lung transplant released

    More details of Lauda's condition after lung transplant released

    "One can absolutely assume that lung transplantation is not a late effect of the fire accident", he said. Niki Lauda talks to the media at the airport in Duesseldorf, Germany, March 20, 2018.
    Barcelona Agree Deal For Manchester United Ace, His Days Are Numbered

    Barcelona Agree Deal For Manchester United Ace, His Days Are Numbered

    It is understood that the hard relationship between Mourinho and his 25-year-old star has become tense once again, however. Pogba is "disillusioned" with life in Manchester after a season of being at odds wiht his manager, Jose Mourinho .
    Chris Pratt’s ‘Cowboy Ninja Viking’ yanked from release schedule, delayed indefinitely

    Chris Pratt’s ‘Cowboy Ninja Viking’ yanked from release schedule, delayed indefinitely

    He'll also return to voice Emmet Brickowski in The Lego Movie 2 and he has the western The Kid coming up next year. As for Chopra, her future with the film remains unclear.
  • Alex Jones 'hasn’t violated our rules — Twitter CEO

    Alex Jones 'hasn’t violated our rules — Twitter CEO

    In a similar move, Spotify also removed all the episodes of Jones' The Alex Jones Show after removing selected episodes last week. Dorsey said the company was committed to promoting "a healthy conversational environment" - which included Jones.
    Lombok quake  death toll rises to 105 amid search for survivors

    Lombok quake death toll rises to 105 amid search for survivors

    Few buildings were left standing in Kayangan on the island's northern end, where residents told Reuters that as many as 40 died. Home Affairs Minister Peter Dutton was dining at a restaurant on the 12th floor of a Lombok hotel when the quake struck.

    Samuel L. Jackson Will Be Back For SPIDER-MAN: FAR FROM HOME

    Far From Home takes place after Avengers 4 , though the characters could always be appearing in a flashback or something similar. Now we know a couple of former S.H.I.E.L.D. agents are suiting up again to meet Spidey on the big screen for the first time.
  • Matthew Perry Recovering After Gastrointestinal Surgery

    Matthew Perry Recovering After Gastrointestinal Surgery

    The Friends actor was rushed to hospital in LA on Tuesday to have emergency surgery to fix a gastrointestinal perforation. A gastrointestinal perforation typically occurs in the stomach, small intestine or bowel.
    'House of Cards' Season 6 comes to Netflix on November  2

    'House of Cards' Season 6 comes to Netflix on November 2

    Wright's character replaces Frank Underwood, previously played by former leading man and overall bad person Kevin Spacey . The last dance for Netflix's House of Cards begins (and ends, with all episodes premiering at once) on November 2.
    Osama bin Laden's Mother Interviewed for First Time

    Osama bin Laden's Mother Interviewed for First Time

    Hassan said his advice to Hamza would be to "think twice about what he was doing and to not retake the steps of his father. She reminisces, "He was a very good child until he met some people who pretty much brainwashed him in his early 20s.


Most liked

Oscars: Academy to add achievement in popular film category
The MTV Movie Awards? - laura (@lauracsx)'Popular?' Does that mean bad but makes lots of money for the studios? They argue the change "will not affect awards eligibility dates or the voting process".

Google looks to offer cloud services in China
To be specific, there have been reports that Google is working on censored versions of its Search and News apps . A report from Bloomberg says Tencent can encourage its cloud hosting partners to use Google services.

England cricketer Ben Stokes arrives in court for day two
Stokes and several other England players had gone to Mbargo to celebrate a one-day global win over the West Indies last September. The trial before Judge Peter Blair QC, the Recorder of Bristol, is expected to last between five and seven days in courtroom one.

Mosquitoes Test Positive For West Nile In Wethersfield
A Dallas resident is the first person to die from West Nile virus this year in Dallas County, health officials announced Tuesday. With a second positive result for the virus residents should make sure they use the following strategies to avoid the virus.

China, Russia pledge to protect Iran trade despite US
It will be followed in November by other measures affecting the oil and gas sector as well as the Central Bank. His Tuesday morning tweet came as Washington's new sanctions on Tehran took effect overnight.

United Kingdom trade minister says ‘no deal’ Brexit more likely than not
The saga over Brexit has come to dictate the pound's fortunes as fears mount about the impact it would have on Britain's trade. Last week, Mrs May cut short her summer holiday to meet with French president Emmanuel Macron.

Saudi Arabia withdrawing students from Canada
On Tuesday, Saudi Arabia's national airline Saudia halted all direct flights to and from Toronto following Canada's intervention.

Carrie Underwood announces pregnancy, tour dates
Tickets for the concert at Bridgestone Arena, which is set for September 27 of 2019, go on sale Friday, Aug. 17, of 2018. Shortly after that, she released her comeback single, " Cry Pretty ", and has been back in the spotlight.

New Corbyn apology fails to curb antisemitism row
Writing on Twitter, Mr Perkins said Mr Watson was right "on all counts" and described #resignwatson as a "virtual cesspool". The stance has been backed by Mr Corbyn, who has also vowed to root out anti-semites from Labour ranks.

Discovery: Huge glowing 'rogue' planet drifting through space
Kao added, "We think these mechanisms can work not only in brown dwarfs, but also in both gas giant and terrestrial planets". A new planet , which is 12 times bigger than Jupiter , has been discovered outside our solar system by astronomers.

Papa John’s blames Papa John for big sales decline
Stevie Ritchie, the president and current CEO acknowledges this diminished performance. Papa John's is spending a lot of dough on its image.

2 zoo animals killed by softball-sized hail; 14 people injured
Another nine were treated at the scene, but additional details about the victims and their injuries have not been released. The Cheyenne Mountain Zoo evacuated people from the zoo and they were transported by bus to Cheyenne Mountain High School.

Najib charged with three counts under Anti-Money Laundering Act
He appeared at the MACC office in Kuala Lumpur on Tuesday after he was summoned by the anti-graft agency. All the charges relate to SRC International, an energy company that was originally a subsidiary of 1MDB.

Snapchat Loses 3 Million Daily Users, But Posts Q2 Earnings Beat
This was primarily driven by a slightly lower frequency of use among our user base due to the disruption caused by our redesign . Snap had never before logged a quarterly drop in daily users, according to data it has released going back to 2014.

Report on Eliminated Top Syrian Scientist: It Was Mossad
He said it was the fourth time in three years the Mossad has assassinated an enemy weapons engineer in a foreign country. The group has previously claimed attacks targeting officials and militia commanders inside government territory.