Tesla board forms a committee to weigh Musk’s proposal of going private

Tesla board forms a committee to weigh Musk’s proposal of going private

Tesla board forms a committee to weigh Musk’s proposal of going private

The SEC has asked Tesla for more details about Musk's tweets and proof that he has secured the necessary funding for the transaction.

He said he had "funding secured" for a deal, but didn't say where the money would come from. Musk further claimed that he had the "funding secured" to take the company private, an act that would cost up to $70 billion.

Musk said that since his Twitter post on the possibility of a deal the managing director of the Saudi fund had expressed support for proceeding subject to financial and other due diligence. Musk contends the fund approached him about taking Tesla private early previous year, noting that two weeks ago he was approached by the fund's managing director who expressed strong interest in financing a go-private deal.

Musk said on Monday he was in talks with a Saudi sovereign fund for taking the electric vehicle maker private.

Investigators in the Securities and Exchange Commission's San Francisco office are also scrutinizing Musk's moves.

Tesla board forms a committee to weigh Musk’s proposal of going private
Tesla board forms a committee to weigh Musk’s proposal of going private

Shares in Tesla, which are still well below highs hit when Musk initially raised the prospect of the transaction last week, inched up 0.7% in trading before the bell. "They first met with me at the beginning of 2017 to express this interest", Musk said.

The company said in the statement the special committee has the authority to take any action on behalf of the board to evaluate and negotiate a potential transaction and alternatives to any transaction proposed by Musk. The agency declined to comment. Musk allegedly admitted that he "was angry at the company's critics". Denholm is the chief operating officer of Telstra, a telecommunications company. In a statement published on the company's official website, the Tesla CEO also admitted that he was first approached for the move nearly two years ago.

Tesla's other board members include Musk; his brother Kimbal Musk; Twenty-First Century Fox's CEO James Murdoch; Antonio Gracias, founder of Valor Equity Partners; and Ira Ehrenpreis, founder of venture capital firm DBL Partners.

Elon Musk said via Twitter on Monday evening that he was working with Goldman Sachs and Silver Lake as financial advisers on a proposal to take Tesla private. The company has separately retained Wilson Sonsini Goodrich & Rosati for legal counsel.




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