Tesla’s Board Has Met Several Times to Discuss Going-Private Proposal

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

The statement says that Elon started discussing taking the company private with the board last week.

Tesla's shares were down 2.1 percent at $371.70 on Wednesday after closing up 11 percent on Tuesday. It rose slightly in early trading, moving to about $375 per share by 10:45 a.m. ET.

Musk later clarified in a blog post that "a final decision has not yet been made", while touting the benefits of running a private company away from the "enormous pressure" of Wall Street's quarterly earnings cycle.

"It's very hard to put leverage on this company", due to its negative cash flow and "operational issues", Scott said Wednesday on Bloomberg Television.

In a release, board members Brad Buss, Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Linda Johnson Rice, and James Murdoch said Musk opened the discussion last week. In its statement, the board said the company's chief executive had "addressed the funding for this to occur". "The board has met several times over the last week and is taking the appropriate next steps to evaluate this".

As Tesla's board of directors rallied Wednesday behind chief Elon Musk's extraordinary push to take the all-electric automaker private, a growing contingent of investors, analysts and former regulators voiced their doubts that the deal would ever take off.

According to his email to employees, the company will allow its current public shareholders to become private shareholders if they choose against a buyout.

"W$3 e wonder how fully fleshed out Elon's tweets yesterday were", he wrote in a note. And as the stock price has climbed this year, so too have the bets against it.

The issue of share accumulation by outsiders emerged only recently as reports that Saudi Arabia's public investment fund had built up a stake from 3 to 5 percent after its offers of purchase of new shares in Tesla were spurned by the company.

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. In his first tweet he said funding was secured but provided no details.

"Just because" Musk wants it at $420 "doesn't mean that there aren't other people who might be willing to come in with another transaction that would be more beneficial to shareholders", Pitt said.

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