Tesla board confirms Elon Musk's buyout plans

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Tesla's board has confirmed that it will consider the proposal by chief executive Elon Musk to take it private.

Rather, it was attributed to Brad Buss, Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Linda Johnson Rice, and James Murdoch.

The statement says Musk "addressed the funding for this to occur" in the conversations. "The board has met several times over the last week and is taking the appropriate next steps to evaluate this".

The oil-rich kingdom of Saudi Arabia's investment fund has gobbled up a multibillion-dollar stake in the company in recent months, the Financial Times reported Tuesday, but Tesla has not answered questions about the involvement of the kingdom, or anyone else, in how he would finance the company's exit from public markets.

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.

Musk, who has had a contentious relationship with Wall Street analysts, and short-sellers who bet against his stock, tweeted on Tuesday that he could take the company private at $420 per share-but Farley said a company doesn't necessarily run better if it's out of the public eye. But after the markets opened Wednesday morning, Tesla's stock edged downward about 1 percent, to $375.

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"Who gives $30 to $50 billion to buy back the shares?", asked NordLB analyst Frank Schwope.

"This proposal to go private would ultimately be finalized through a vote of our shareholders", Musk said in explaining the potential move.

Neither Elon nor Tesla has said yet where it's getting the money to go private.

Most analysts were skeptical, but some said a deal could materialize if Musk succeeded in lining up the right funding. Korus said he would need more details from Musk to judge whether a buyout offer would be practical and at what price it would be attractive. This proposed route would also keep all Tesla employees as shareholders/investors in the company, while Tesla would adopt an ownership and governance structure similar to the current form of SpaceX.

"Just because" Musk wants it at $420 "doesn't mean that there aren't other people who might be willing to come in with another transaction that would be more beneficial to shareholders", Pitt said.

Musk holds "about 20 percent of the company now", the statement said, and made clear that he doesn't see that changing whether Tesla is private or public.

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