Published: Wed, August 15, 2018
Markets | By Erika Turner

Tesla forms panel to gauge taking company private

Tesla forms panel to gauge taking company private

Musk has since attempted to calm things down by issuing a blog post Monday in which he expressed confidence that conversations with a Saudi sovereign wealth fund can lead to a deal.

The board had confirmed earlier this month that it had "met several times over the last week" to discuss going private. "His suit states that "the fraudulent nature of Musk's statements was uncovered over the next two days when neither Tesla nor Musk substantiated Musk's claim that there was secure financing for a going-private transaction at $420 [$AU577] a share" and causing the stock price to drop from "$379.57 [$AU521] per share, on August 7, 2018, to close at $352.27 [$AU484] per share, on August 9, 2018".

While Musk used Monday's blog post as a way to show the tweets were part of an effort to be completely transparent with shareholders about wanting Tesla to be a private company, sources told the paper it was impulsive and was driven by feelings of anger for the auto maker's critics. In a tweet late Monday, the chairman and CEO said he's getting advice from Goldman Sachs Group Inc. and private-equity firm Silver Lake and had lined up legal advisers.

Musk said that the Saudi Arabian sovereign wealth fund "has approached me multiple times" starting in early 2017 about taking Tesla private and had already taken a stake of almost five percent though share purchases.

The shares were last down 1.4 percent at $351.34 on Tuesday.

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No motive has been disclosed, and police said they were working to determine a link between the gunman and the couple. Prime Minister Justin Trudeau addressed the tragedy at the Taste of the Danforth Festival in Toronto Friday night.

According to Musk, "two thirds" of Tesla's current stockholders would be interested in continuing to hold the firm's shares once it goes private. Musk said that the Saudi Arabian sovereign wealth fund offered to fund the transaction, but he is also seeking additional investors before he develops a final proposal.

The special committee is composed of independent directors Brad Buss, Robyn Denholm and Linda Johnson Rice.

Embattled electric vehicle manufacturer Tesla racked up its third class-action suit, filed today in California's Northern District Court, stemming from freaky and potentially unfounded tweets sent last week by CEO Elon Musk.

The special committee has retained lawyers - Latham & Watkins - in addition to a legal team used by the company.

Tesla CEO Elon Musk says he's making plans to make the electric auto and solar panel maker private, but no deal has been finalized.

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