Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessCompanies

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.

August 10, 2018 / 10:25 PM IST
A Tesla Model S charges at a Tesla Supercharger station in Cabazon, California, U.S. May 18, 2016.   REUTERS/Sam Mircovich/File Photo - TM3ECAQ0SK201

A Tesla Model S charges at a Tesla Supercharger station in Cabazon, California, U.S. May 18, 2016. REUTERS/Sam Mircovich/File Photo - TM3ECAQ0SK201

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.

Moneycontrol News
first published: Aug 10, 2018 10:22 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347