Moneycontrol
Last Updated : Aug 10, 2018 10:25 PM IST | Source: Moneycontrol.com

Tesla board taking Elon Musk's going private tweet seriously, to meet advisors next week: Report

Musk had previously discussed the prospect of taking the company private with Saudi Arabia's sovereign wealth fund.

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The board of directors of Tesla plans to meet financial advisors next week to formalise the next step to explore plans of CEO Elon Musk taking the company private.

As per a CNBC report, sources suggest that the board may ask Musk to "recuse himself" as the company's internal stakeholders want to review his proposal of taking the company private at $420-per-share. Sources quoted in the report said that the board has apparently asked Musk to appoint his own set of advisors.

Musk recently twitted that he hopes to take Tesla private, which also led to the US Securities and Exchange Commission (SEC) probing his claims of securing funds for the same. Musk wrote "funding secured", and was considering to take Tesla private at $420 per share.

Musk had earlier discussed the prospect of taking the company private, with Saudi Arabia's sovereign wealth fund. The Saudi's Public Investment Fund bought a 3-5 percent stake in the electric car maker, as reported by The Financial Times.

The board's move to ask Musk to not be part of the process and hire his own advisers is not an unusual request. When Michael Dell of Dell Technologies, decided to take his company private in 2012 and 2013, his board had asked him to keep himself away from the discussion, getting his own advisors.
First Published on Aug 10, 2018 10:22 pm
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