Tesla board evaluating CEO Musk's idea to take company private

CEO and lead designer at SpaceX and co-founder of Tesla speaks at the International Space Station Research and Development Conference in Washington

Shares were down 3 percent in premarket trading after closing up 11 percent at $379.57 on Tuesday.

Musk said on Twitter on Tuesday that he was considering taking the loss-making electric carmaker private at $420 (325.4 pounds) a share, which would value a deal at more than $70 billion. Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long term. "This included discussion as to how being private could better serve Tesla's long-term interests, and also addressed the funding for this to occur", the statement said.

Tesla posted a new blog to its site, essentially a copy-and-paste of an email Musk sent to Tesla's employees regarding taking the company private again.

Six members of Tesla's board of directors issued a statement Wednesday, acknowledging that discussions have been ongoing since last week about going private.

Tesla has moved to further formalise the prospect of the electric vehicle company undergoing a buyout with a statement from the company's directors.

Musk also said he intends to give Tesla's existing shareholders the option of retaining a stake in the company through a special fund, if they want.

While Tesla's board of directors might approve Musk's idea of taking the automaker private, current shareholders have the final say. Musk's money-losing and cash-burning company is an unlikely candidate for debt investors to be willing to help go private. Musk owns about 20 percent of the Palo Alto, California, company's stock, so that likely would reduce the cost of the buyout.

Takeaways from day six of the Paul Manafort trial
In another heated exchange, Downing tried to press Gates into explicitly saying that he had embezzled money from Manafort. Prosecutors have noted that Gates and Manafort were not the targets of the investigation at the time of the interview.

'Basically, I'm trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, ' Musk wrote.

Musk has promised a sustained net profit starting in the third quarter.

FILE PHOTO: Elon Musk, founder, CEO and lead designer at SpaceX and co-founder of Tesla, speaks at the International Space Station Research and Development Conference in Washington, U.S., July 19, 2017.

China's Tencent Holdings Ltd, which took a 5-percent stake in Tesla a year ago, could also be a possible partner.

Company share prices, particularly in deals as giant as this one, are nearly always decided by corporate executives, board members or consultants who review market data and optimize for maximum value.

Most analysts were skeptical, but some said a deal could materialize if Musk succeeded in lining up the right funding. He suggested he did in an initial tweet, but so far Tesla hasn't disclosed any sources of financing, and no one has stepped forward publicly to say they're backing the plan. Many initially thought it was Elon Musk's attempt at a bad joke about marijuana, because "420" has always been associated with pot.

Related news:

Hot News

isis-killer-beheading-video-story-top Saudi rules out mediation in Canada row, mulls new measures
Aug 08, 2018 - 22:56
Saudi Arabia's Foreign Ministry called the statement " a major, unacceptable affront to the kingdom's laws and judicial process ". The Canadian dollar was down by 0.2% against the United States dollar to 1.3096 at 8:59 a.m.

isis-killer-beheading-video-story-top Other Politicians Held, Recently Sold Stock That Got Chris Collins Arrested
Aug 08, 2018 - 22:51
Collins, 68, has served in the House since 2012 and has planned on running for a fourth term in the November congressional elections.

isis-killer-beheading-video-story-top Former Tamil Nadu chief minister Karunanidhi dies
Aug 07, 2018 - 23:28
In his political career , he first received broader notice when he found a close friend and colleague in DMK founder CN Annadurai. The 94-year-old veteran politician, who gave 80 years of his life to Tamil Nadu's people, lived a life full of surprises.

isis-killer-beheading-video-story-top Largest wildfire in California history still growing
Aug 07, 2018 - 23:25
Two years ago, the Clayton fire tore through nearly 4,000 acres and 300 structures, many of them mobile homes and rentals. Another major fire also burning in Northern California, the Ferguson Fire , extended into its third week.

isis-killer-beheading-video-story-top Facebook shares soar as it improves banking relationships
Aug 07, 2018 - 23:10
Bank spokesman said the bank "has not shared any customer data or information with Facebook or any other platforms". A critical part of these partnerships is keeping people's information safe and secure.

isis-killer-beheading-video-story-top Musk Says in Tweet He Is Considering Taking Tesla Private
Aug 07, 2018 - 22:11
The BBC has been unable to verify the post was written by Mr Musk himself, but it has pushed the shares 6% higher. The company did not immediately respond to request for comment. "Yes, might take Tesla private", he said.

isis-killer-beheading-video-story-top Anger, Fear And Defiance In Iran As US Sanctions Return Today
Aug 07, 2018 - 17:09
Rouhani told state television on Monday night that Iran had no intention of negotiating a new deal with the United States. But on Iran, Mr Trump now has a team who share his contempt for the regime and are even more determined to see its end.

isis-killer-beheading-video-story-top Kohli tops ICC rankings as best test batsman
Aug 06, 2018 - 16:42
Stokes, who arrived in court accompanied by his agent, the former England batsman, Neil Fairbrother and his wife Clare. I know Stokesy will get brought up but he's a very reluctant slipper. "Ben has no concerns about it as well".

isis-killer-beheading-video-story-top Manchester United's move for Barcelona's Yerry Mina cancelled
Aug 06, 2018 - 14:24
Both of those links strangely came about after the pair had enjoyed strong performances at the World Cup . Old Trafford is running out of time to find an upgrade over Chris Smalling and/or Phil Jones.

isis-killer-beheading-video-story-top Bob Evans Suspends Partnership Deal With Ohio State Coach Urban Meyer
Aug 03, 2018 - 07:27
Ohio State is also conducting an investigation, undoubtedly to find out if Meyer knew of the allegations against Zach Smith . At issue is whether Meyer knew about domestic violence allegations against Zach Smith made by his ex-wife, Courtney Smith .

isis-killer-beheading-video-story-top Mnangagwa has large lead in Zimbabwe presidential election - electoral commission
Aug 03, 2018 - 01:27
Opposition MDC party supporters protest in the streets of Harare during clashes with police on August 1. The country's Home Affairs Minister Obert Mpofu announced a state of emergency throughout the country.

isis-killer-beheading-video-story-top The convergence of Mars with the Earth
Aug 03, 2018 - 00:56
The local stargazers are invited for a camp to witness the Red Planet from 7 pm to 10 pm tonight at the Colombo Campus grounds. The minimum distance from the Earth to Mars is about 33.9 million miles (54.6 million kilometers), and is rarely achieved.

isis-killer-beheading-video-story-top England wins toss and bats vs India in 1st of 5 tests
Aug 03, 2018 - 00:55
It was nearly an easy-going partnership for the opening duo as they brought up 50 off just 70 balls before the drama began. Kohli survived an arduous spell by James Anderson and Ben Stokes to hold the Indian innings together.

isis-killer-beheading-video-story-top Samsung officially announces the Galaxy Tab S4 to take on iPad Pro
Aug 02, 2018 - 23:56
By segment, the chip business accounted for 6.1 trillion won, followed by the display division with 1.1 trillion won. Samsung posted its slowest quarterly profit growth in more than a year today (31 July).

isis-killer-beheading-video-story-top Apple’s Market Cap Hits $1 Trillion
Aug 02, 2018 - 21:42
On Tuesday, the company said Apple Services, which includes things like the App Store and Apple Music, saw a 31% jump in revenue. April 1976: Jobs, Wozniak and Ronald Wayne create Apple Computer to sell an eponymous computer hand-built by Wozniak.