Tesla board mulls de-listing plan

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Tesla board mulls de-listing plan

Tesla has moved to further formalise the prospect of the electric vehicle company undergoing a buyout with a statement from the company's directors.

Ford Executive Vice President Jim Farley on the benefits of being a public company after Tesla CEO Elon Musk tweeted he is considering taking his company private.

They said this "included discussion as to how being private could better serve Tesla's long-term interests". "The board has met several times over the last week and is taking the appropriate next steps to evaluate this". The company already has a $2 billion investment from Saudi Arabia's sovereign fund as well as Tencent, which took a 5 percent stake in 2017.

"Distraction or not, the move feels right even if Musk is downplaying how supportive public markets have been".

Mr Musk said in his tweet on Tuesday that shareholders would be offered $420 (£326) per share, valuing the business at more than $70bn. Shares were down 3 percent in premarket trading after closing up 11 percent at $379.57 on Tuesday.

It's possible Musk could persuade some large institutional investors to remain shareholders in the private company, which could reduce his funding needs, Sacconaghi said.

Two of the potential stumbling blocks to Musk's plan include the stock price premium not being enough to get the existing shareholders on board to support the sale and coming up short on the announced funding to complete the transition.

Musk has downplayed the power of the tweets he launches at all hours to his 22 milion Twitter followers: "My tweets are literally what I'm thinking at the moment, not carefully crafted corporate bs, which is really just banal propaganda", he said in June. And as the stock price has climbed this year, so too have the bets against it.

On Wednesday, Tesla's board said it was evaluating the proposal.

China's Tencent Holdings Ltd, which took a 5-percent stake in Tesla past year, could also be a possible partner.

Several members of Tesla's board issued a joint statement on the company's investor-relations site.

He set a target stock price of $420 a share and said he had investors lined up to purchase the company at that price.

"Last week, Elon opened a discussion with the board about taking the company private", the board members wrote. The statement wasn't signed by Mr. Musk, his brother Kimbal Musk or the seventh independent director Steve Jurvetson, who is now on leave.

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