Tesla board says it will assess plan to go private

Tesla board says it will assess plan to go private

Tesla board says it will assess plan to go private

"During the meeting, the Managing Director of the fund expressed regret that I had not moved forward previously on a going private transaction with them, and he strongly expressed his support for funding a going private transaction for Tesla at this time", Musk said in his statement.

"This is why I referred to "funding secured" in the August 7th announcement". Private equity firm Silver Lake is also not signed up officially as a financial adviser, as it is helping Musk explore how to take Tesla private with no compensation, Reuters reported on Monday.

He said he had most recently met with the Saudis on 31 July and left that meeting "with no question that a deal with the. fund could be closed, and that it was just a matter of getting the process moving".

Musk's tweets announcing his intentions to take the company private have prompted a backlash from some investors.

Musk had tweeted on Monday he was working with Goldman Sachs and Silver Lake as financial advisers.

The committee, made up of three independent directors, said Tuesday that it has not received any formal proposal from Musk.

Shares of Tesla Inc. jumped 11 percent in a day, raising the value of the company by $6 billion.

The Securities and Exchange Commission has inquired about Musk's claims, which, if found to be untrue, could cause greater problems for Tesla chief executive. Continuing, it said there is no guarantee it would accept a proposal from Musk.

The board has given the committee authority to act on its behalf, including negotiating a deal to take Tesla private.

The chief executive of the electric auto company said earlier on Monday that the manager of Saudi Arabia's sovereign wealth fund had voiced support for the company going private several times, including as recently as two weeks ago, but also said that talks continue with the fund and other investors. Rice, the first African-American and second woman to join the board, is CEO of Johnson Publishing Company and Chairman Emeritus of EBONY Media Holdings, the parent of EBONY and Jet brands, according to Tesla's website. They haven't reached any conclusion on whether taking Tesla private is advisable or feasible.

Latham and Watkins LLP has been retained by the committee as its legal counsel.

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