Musk's Tweets Blindsided Tesla Board Members

Elon Musk said the Saudi sovereign wealth fund had approached him multiple times about taking Tesla private

Elon Musk is moving forward with his plan to take Tesla private.

Musk, who is still looking for funding for the plan, also said law firms Wachtell, Lipton, Rosen & Katz and Munger, Tolles & Olson would be legal advisers on the plan.

He has given more details - including saying he is working with Goldman Sachs and buyout firm Silver Lake - but is yet to convince Wall Street analysts and investors that he can find the billions needed to complete the deal.

But when he initially dropped his bombshell in an August 7 tweet, Musk stated he had "funding secured" to buy Tesla stock at $420 per share - 23 percent above its August 6 closing price. While this values the business at more than $70bn, Mr Musk has said he does not need to raise this amount of financing as he only intends to make the offer to those who did not want to remain investors if the company did go private. "This is why I referred to "funding secured" in the August 7th announcement".

That's according to the New York Times, which, citing people familiar with the chain of events that unfolded last week, reported Musk's tweets weren't given much thought ahead of time and were not vetted with the company's board.

Musk said that since his Twitter post on the possibility of a deal the managing director of the Saudi fund had expressed support for proceeding subject to financial and other due diligence.

A statement Tuesday from Tesla's board said the special committee "has the full power and authority of the board of directors to take any and all actions on behalf of the board of directors as it deems necessary to evaluate and negotiate a potential going private transaction and alternatives to any transaction proposed by Mr. Musk".

PIF officials have said in the past that decisions at the sovereign wealth fund are made with care, emphasising corporate governance.

Meanwhile, Musk faces scrutiny of his tweet on secured funding.

A major investment from Saudi Arabia would likely trigger a review by the Committee on Foreign Investment in the United States, which scrutinizes deals for potential national security concerns.

Still, Musk contended in his blog post that Tesla's board was notified five days before he sent out the tweets about the potential deal.



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