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Tesla forming committee to assess plan to go private

Associated Press

Palo Alto, Calif. – Tesla is forming a special committee to evaluate proposals to take the company private one week after CEO Elon Musk said he was considering it.

The committee, made up of three independent directors, said Tuesday that it has not received any formal proposal from Musk.

Musk tweeted on Aug. 7 that he had “funding secured” to buy Tesla shares at $420 per share.

That tweet may have created a sticky situation for Musk as it appears the funding may not be locked up just yet. According to Musk, the tweet followed a meeting with the managing director of Saudi Arabia’s Public Investment Fund.

Shares of Tesla Inc. jumped 11 percent in a day, raising the value of the company by $6 billion. Shares have fallen from those highs, but remain elevated.

That’s led to at least two class-action lawsuits alleging securities violations.

In a prepared statement Tuesday, Tesla said that “no assurances can be given regarding the likelihood, terms and details of any proposal or potential” to go private. Continuing, it said there is no guarantee it would accept a proposal from Musk.