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Report: Tesla board plans talks with financial advisers to explore buyout


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Report: Tesla board plans talks with financial advisers to explore buyout

Tesla Inc.'s board plans discussions with financial advisers the week of Aug. 13 as it looks to formally weigh CEO Elon Musk's proposal to take the company private, CNBC reported Aug. 9, citing unnamed sources.

According to the report, the board may tell Musk to recuse himself from the process and has already told him that he needs his own advisers.

The electric-car maker's board may also create a special committee of independent directors to evaluate the buyout details, CNBC reported.

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

On Aug. 7, Musk posted a string of tweets regarding 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. Shares closed about 11% higher in heavy trading after his statements.

The company's board said Aug. 8 that Musk opened a discussion about taking the company private the week of July 30 and the board is 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 CEO Elon Musk's tweets were truthful.

Analysts said Aug. 9 that privatization would help Tesla escape short-sighted stock market scrutiny and better allow the company to focus on its long-term goals. However, analysts also noted that the feasibility of the deal remained unclear.

The company's stock has lost all the gains that followed Elon Musk's take-private tweets. Shares closed down 4.83% to $352.45 on Aug. 9.