Blog Report: Tesla’s Board to Meet With Advisors About Take-Private Deal

Tesla’s board of directors plans to meet next week with financial advisors to discuss a plan to take the company private, according to a report from CNBC citing people familiar with the matter.

Musk tweeted this week that he would like to take the company private and has secured funding to do so. It’s not immediately clear where that funding will come from. The Securities and Exchange Commission has reportedly reached out to the company for further explanation.

The CNBC report says Musk will recuse himself from proposal reviews and will form his own separate set of advisors. Tesla’s board plans to develop a special committee to consider options, the report said.

Among those named as potentially providing the cash for the deal is Saudi Arabia’s sovereign wealth fund, which reportedly bought a 3 percent to 5 percent stake in the electric car maker.

Tesla has declined to comment on funding for the transaction.

 

[ggr]

no vote? but Elon said he has shareholder support. are you saying that claim is a lie?
Shareholders have rights, doesn't matter if they own 1 share or 100,000.
It is stunning how I argue that i wish Musk would stop with the overpromising and general Trumpish craziness... because I DON'T want to see him get hit with lawsuits... and I get railed for it The meeting with the SEC isn't going to be pleasant. I hope they go private and make all of this fighting go away.

I will say that your claim that "Elon said he has shareholder support" is a lie. All he said was that he had backers lined up. In fact, in his second tweet on the subject he specifically said that the only barrier was the stockholder vote (which is incorrect, since he also need board backing, but he seems to think he has that already).

 

[achilles992000]

Going private is best for Tesla. i think the negativity will slow down. At the same time, i hope that Elon will get off twitter.
Social media has been shown to be bad for mental health. Elon has been very erratic. He will be better off without twitter.

 

[Peteski]

Social media has been shown to be bad for mental health. Elon has been very erratic. He will be better off without twitter.

Absolutely agree! I got off Twitter in 2010 and haven't looked back since. I don't mind the odd focused interest forum like this, but Twitter is just nuts!