Tesla directors: 'No formal proposal' to take company private

Tesla directors: 'No formal proposal' to take company private

Tesla directors: 'No formal proposal' to take company private

Musk said that full details regarding the source of funding would be provided before anyone would be asked to decide on going private but that it was "premature" to share such information on Monday.

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.

Investigators in the Securities and Exchange Commission's San Francisco office are also scrutinizing Musk's moves.

Musk quickly doubled down on the maybe-joke, replying to his tweet by calling Tesla's forthcoming fashion offerings "S3XY" and "unis3x" and suggesting that they be teamed with "thigh-high sock boots". Musk said the fund had "more than enough capital" for such a deal, but The Wall Street Journal pointed out that the fund is having difficulty financing its existing commitments. But Tesla's announcement appears to contradict Musk's August 7 tweet in which he said the "only reason why" the deal is not certain "is that it's contingent on a shareholder vote". These comments sparked suspicion that Musk could be manipulating the stock price of Tesla, unless he was stating facts, and this suspicion in turn prompted the revelation.

The special committee has the authority to take any action on behalf of the board to evaluate and negotiate a potential transaction and alternatives to any transaction proposed by Musk, the company said in the statement. Silver Lake contributed $1 billion for the 2013 Dell transaction.

The independent directors are Robyn Denholm, Brad Buss and Linda Johnson Rice.

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

But corporate governance and shareholder voting advisers Glass Lewis and Institutional Shareholder Services said they do not consider Buss an independent director, due to his connections to a solar panel business the company bought two years ago. Musk allegedly admitted that he "was angry at the company's critics".

Denholm, the first woman to join Tesla's board, is chief operations officer of telecom firm Telstra and the ex-CFO of network gear maker Juniper Networks. Wilson Sonsini Goodrich and Rosati will be legal counsel for Tesla itself.

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