Elon Musk isn't kidding, Tesla board confirms TSLA could go private

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A statement was issued by six members of the electric carmaker's board after Mr Musk tweeted to say he had the funding to de-list the company. Musk tweeted on Tuesday that he was considering a buyout plan at $420 per share, or 22% above Tesla's opening price that day and still almost 14% more than its opening quote on Wednesday.

The report came the day after Musk said he was considering taking Tesla private and that funding had been secured, but did not offer any specifics about the unprecedented move.

Major shareholders include mutual fund giants Fidelity Investments and T. Rowe Price Group, whose holdings represent, respectively, 9% and 8% of Tesla's stock, per Barron's. He later posted a blog explaining the potential move, saying going private would be the "best path forward" for the Palo Alto, California-based company.

"First, a final decision has not yet been made, but the reason for doing this is all about creating the environment for Tesla to operate best".

By taking Tesla private, Musk believes that the company will be able to sharpen its long-term focus of revolutionizing an automobile industry dominated by fuel-combustion vehicles without having to cater to investors' fixation on how the business is faring from one quarter to the next. He claims Tesla is the most shorted stock "in the history of the stock market" and that going private would remove them from the narrative.

On Tuesday, Musk revealed on Twitter that he was considering privatizing the company after taking it public in 2010. The company declined to comment beyond pointing to an all-employee email sent Tuesday by Musk.

Elon Musk considering taking Tesla private, TSLA stock trading halted
Musk said back in June the v9.0 would be the release to include the full self-driving features to make Teslas autonomous. During Wednesday's earnings call, Tesla once against lost money in the quarter to the tune of $740 million.

"Finally, this has nothing to do with accumulating control for myself".

Jonas wrote that he understands Musk's desire to avoid the pressures of quarterly earnings as a public company. Musk set a price of $420 a share, substantially above the stock's current trading price and Tesla's all-time closing high of $385 a share.

China's Tencent Holdings Ltd (0700.HK), which took a 5 percent stake in Tesla previous year, could also be a possible partner. "How could Tesla possibly fund such a large transaction?" But going private could also complicate Tesla's effort to build a mainstream electric auto by removing the easy access to capital the Wall Street darling has enjoyed.

Tesla has moved to further formalise the prospect of the electric auto company undergoing a buyout with a statement from the company's directors. But I didn't walk away from it thinking, .

Any buy-out would require a shareholder vote.