Tesla board forms committee to evaluate buyout proposals

Tesla board forms committee to evaluate buyout proposals

Tesla has not received a formal proposal from its founder Elon Musk to take the company private, its board of directors has said.

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. Moreover, Silver Lake is not now discussing participating in the deal as an investor, the source said. Tesla, meanwhile, declined to comment when reached by Business Insider.

What exactly Musk had intended by saying "secured" has emerged as a potential legal and regulatory minefield for the Silicon Valley billionaire after his unorthodox disclosure. Silver Lake and both law firms did not immediately respond to a request for comment. Shares have fallen from those highs, but remain elevated.

The shares were up 0.4 percent to $357.87 on Tuesday.

Following that, Musk met with the Saudi fund representatives on July 31, which has already accumulated nearly 5% of Tesla stock via public markets.

According to two unnamed people familiar with the fallout who talked to The Times about Musk's online musings, the Tesla CEO allegedly told an informal adviser that he posted on Twitter "impulsively", and said he was "not the kind of person who could hold things in", and admitted he "was angry at the company's critics".

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Saudi Arabia's Public Investment Fund (PIF) is known for its technology investments, including the $45bn it has spent in SoftBank Group Corp's Vision Fund.

The Saudi fund intends to sell its $70 billion stake in Saudi Basic Industries to oil giant Aramco, which could free up funds for new deals, but that sale may take months to conclude. He clarified on Monday that he meant he'd expected the finding from Saudi Arabia.

PIF officials have said in the past that decisions at the sovereign wealth fund are made with care, emphasising corporate governance. The PIF board is headed by the Crown Prince Mohammed bin Salman.

Additionally, Musk and Tesla are being sued by investors who claim the plan to go private was part of a "fraudulent scheme" to punish short-sellers, or investors who borrow stock in a company with the hope shares will fall.

That tweet may have created a sticky situation for Musk as it appears the funding may not be locked up yet.

In the days that followed, the SEC got involved, reportedly investigating Musk's online musings about taking the company private.

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