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Report: Tesla seeking large group of investors for Musk's take-private proposal


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Report: Tesla seeking large group of investors for Musk's take-private proposal

Tesla Inc.'s CEO Elon Musk and advisers are looking to line up a large group of investors for Musk's proposal to take the company private, Bloomberg News reported Aug. 10, citing anonymous sources.

Musk reportedly wants to avoid concentrating ownership among a few new large stakeholders.

Tesla is holding early talks with banks to weigh the feasibility and structure of a potential deal, according to the report.

Discussions are at a preliminary stage and Tesla has not yet formally hired a bank for the process. The company has not made a final decision on how to proceed either.

Tesla did not immediately respond to S&P Global Market Intelligence's request for comment.

The news comes a day after CNBC reported that the company's board is planning discussions with financial advisers the week of Aug. 13 to weigh Musk's plan. According to the report, the board may tell the CEO to recuse himself from the process.

Musk stunned investors Aug. 7 by tweeting his interest in taking Tesla private at $420 a share, following reports that Saudi Arabia's sovereign wealth fund acquired about 3% to 5% of shares in the electric vehicle maker.

"Am considering taking Tesla private at $420. Funding secured," Musk posted.

Six members of Tesla's board said Aug. 8 that Musk started a discussion about taking the company private in the week of July 30 and that they are now evaluating the possibility. The Wall Street Journal reported the same day that the U.S. Securities and Exchange Commission inquired with Tesla on whether Musk's tweets were factual.