Tesla take-private skepticism grows after Elon Musk's funding claim

Danny Moloshok  Reuters

Tesla directors have said they knew about Elon Musk's surprise proposal to privatise the money-losing auto maker before he tweeted about it and have met several times in the past week to discuss the proposal.

On Wednesday morning, multiple members of Tesla's board of directors signed a statement that confirmed Musk was serious about taking Tesla private.

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

The board had "met several times over the last week" to discuss going private, the statement said. 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.

Teresa Goody, a former SEC official, said Musk "did something inappropriate and caused chaos in the market" in a way that would likely draw scrutiny from investigators.

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.

Tesla stock opened at $369.09 on Wednesday, sliding almost 3 percent from its Tuesday closing price of $379.57.

GOP congressman from New York charged with insider trading
Collins was one of President Donald Trump's earliest supporters and acted as the congressional liaison for Trump's 2016 campaign. "Congressman Collins will have more to say on this issue later today", they added. "Rep.

Barnier: I’m working day and night for a Brexit deal
The benchmark FTSE 100 was down 17 points or 0.22 percent at 7,642 in late opening deals after rallying 1.1 percent on Friday. Trump, describing her as "irrational" and "emotionally inspired" throughout the Brexit negotiations.

Twitter is not banning Alex Jones; Jack Dorsey explains why
Facebook suspended Jones' account for 30 days on Monday due to repeated violations, includings posts that it said glorified violence and dehumanized others .

"What does Musk mean by 'funding secured?"' asked Toni Sacconaghi, an analyst at Bernstein who has always been bearish on Tesla shares.

But the board offered no further details of the proposal or its funding, sparking new questions about the feasibility of the master gambit Musk revealed in a surprise series of midday tweets on Tuesday.

Musk mused Tesla could be bought back at $420 per share.

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.

Harvey Pitt, a former chair of the Securities and Exchange Commission, said Musk's asserting a final sale price and that funding was "secured" opened him to potential charges of stock manipulation or securities fraud. "This is out there, even for Tesla", analysts with Barclays wrote Wednesday.

The statement was not from the company's full board of directors.

Related News:

  • Prepare for $90 oil after sanctions against Iran take effect

    Prepare for $90 oil after sanctions against Iran take effect

    Oil prices rose on Tuesday as the USA reintroduced sanctions against major crude exporter, Iran, tightening global markets. The last time Iran was sanctioned, it lost half of its exports, which have now returned to 2.4 million barrels per day.
    U.S.  student poses with alligator for graduation photos

    U.S. student poses with alligator for graduation photos

    With over 6,000 shares, at the time of writing, she wrote, " Not your typical graduation picture ‍♀️ @ Gator Country ". If the animals aren't working well, then we're getting out of the water and letting them be".
    Liverpool face fitness concerns in defence for West Ham opener - Jurgen Klopp

    Liverpool face fitness concerns in defence for West Ham opener - Jurgen Klopp

    Yes, I think it is possible. "I still remember the Burnley game (at Turf Moor in August 2016) when we lost 2-0 with 80 per cent possession".
  • Twitter Reacts to New Oscars Popular Film Category: ‘This Is So Lazy’

    Twitter Reacts to New Oscars Popular Film Category: ‘This Is So Lazy’

    The 2018 awards show, which clocked in at nearly four hours, was the least-watched Oscars to date. The 2019 ceremony will still air on February 24, while the 2020 show will move to February 9.
    Death toll jumps to 347 in 6.9 Indonesia quake

    Death toll jumps to 347 in 6.9 Indonesia quake

    Around 4,600 worldwide and Indonesian tourists have been evacuated from smaller islands as the rescue operation continues. Home Affairs Minister Peter Dutton was dining at a restaurant on the 12th floor of a Lombok hotel when the quake struck.

    Former Trump campaign staffer admits financial crimes

    Gates repeatedly challenged Downing's characterization of certain events with astonishingly self-incriminating frankness. On Tuesday, Gates did connect one part of the bank fraud charges against Manafort to his role in the Trump campaign.
  • Carrie Underwood and Husband Mike Fisher Expecting Baby Number 2

    Carrie Underwood and Husband Mike Fisher Expecting Baby Number 2

    Underwood is known for her songs " Cry Pretty ", "Cowboy Casanova", "See You Again", "Before He Cheats", and "All-American Girl". Underwood did not reveal her due date in the video message. "This has just been a dream come true with the album and baby news.
    ‘Cowboy Ninja Viking’ Movie Stopped In Its Tracks By Universal

    ‘Cowboy Ninja Viking’ Movie Stopped In Its Tracks By Universal

    MacLaren and Pratt will still remain attached to the project, with Chopra staying on if the scheduling ultimately works out. Lieberman and Riley Rossmo's Cowboy Ninja Viking has been pulled from the studio's release schedule, according to Variety .
    Dota 2 veterans defeated by OpenAI bots

    Dota 2 veterans defeated by OpenAI bots

    Next up for OpenAI will be to take on one the best players in the world at The International 8, in September. Game Two was similarly one-sided, although the humans did manage to at least take one tower.
  • Samuel L. Jackson Will Be Back For SPIDER-MAN: FAR FROM HOME

    Samuel L. Jackson Will Be Back For SPIDER-MAN: FAR FROM HOME

    The film is also the Marvel debut of Jake Gyllenhaal , who will play the big bad villain, Mysterio in the film. Warning: I haven't written it yet, but this post will probably contain spoilers for Avengers: Infinity War .
    Gigantic Rogue Planet Found Lurking Outside Our Solar System

    Gigantic Rogue Planet Found Lurking Outside Our Solar System

    The difference between what constitutes gas giants and brown dwarfs is a matter of serious debate among astronomers, says NRAO. This fits with the object being between a planet and a brown dwarf and could provide valuable information about both groups.

    U.S. sets date for additional $16bn in tariffs on China products

    Trade Representative Lighthizer "to identify $200 billion worth of Chinese goods for additional tariffs at a rate of ten percent". It raises the stakes after Donald Trump's initial tariffs on 34 billion in goods last month with Beijing hitting back in kind.


Most liked

Subtropical Storm Debby forms far out over the Atlantic
More than two months into the 2018 Atlantic hurricane season , the forecasters' predictions of a quiet year appear to be accurate. So far this season we have had Subtropical Storm Alberto, which formed in May, as well as Hurricane Beryl and Hurricane Chris.

Lauda progressing in recovery from lung transplant
A best case scenario would see Lauda fully recovered and returning to work in a matter of weeks. Mercedes F1 boss Toto Wolff hopes Niki Lauda will be back at the racetrack in a short time.

Kim Kardashian Finally Opens Up About 'Feud' With Assistant Stephanie Shepherd
The " Keeping Up With the Kardashians " star and her husband Kanye West named their third child after his hometown, Chicago. But Kim insisted that when she was born she just didn't look like either a Rei or a Jo. "She doesn't look like a Jo".

James Anderson narrowly escapes face injury while playing golf after 1st Test
Anderson's duel with Indian skipper Virat Kohli was also on display during the ongoing Test series between India and England. He took a swing, but somehow the ball cannoned off a tree root and shot straight up into his face from point-blank range.

Jon Favreau Star Wars Series Has a $100 Million Budget
Revenue rose 7 percent to $15.23 billion - also missing forecasts. Also, tv show spinoffs for Lady and The Tramp , Monsters Inc .

Snapchat revenue soars despite losing users for the first time
Snapchat is popular for private messaging, but most of the ads Snap sells accompany videos that are shared with a wider audience. For the three month period from April through June, Snap's revenue rose 44% year-over-year to $262 million.

Former PM leaves court amid cheers of 'Hidup Najib'
Former Malaysian prime minister Najib Razak walks out of a courtroom in Kuala Lumpur on Wednesday. Fines as much as five times the amount for each money-laundering charge can be imposed as well.

Heat warning in effect for the Kawarthas until Tuesday
It says a humid air mass will move into southern Ontario and could stay there until a cold front moves in on Tuesday. For Halifax, daytime highs of 29 to 32 degrees are expected, with humidex values in the upper 30's.

Indian ride-hailing firm Ola to take on Uber in Britain
Uber has also won considerable public backing: more than 8,00,000 had signed a petition urging TFL to change their decision. Like Uber , Ola operates a ride-hailing service through an app and relies on the availability of contracted drivers.

Crusaders Coach Breaks Out In Dance After Super Rugby Win
The Lions' territorial dominance continued after the break, setting up powerhouse flanker Cyle Brink's try. Man you could hear them and I think the guys took inspiration from that.

Angelina Jolie wants divorce finalized by end of 2018
However, a third source tells ET that Jolie's court filing on Tuesday was actually "designed to move the divorce process forward". Angelina Jolie is reportedly accusing Brad Pitt of avoiding his child support payments based on their informal arrangement.

Syrian Rocket Scientist Reportedly Assassinated By Israel's Mossad
The official, who works for a Middle Eastern intelligence agency, said Israel had been monitoring Asbar for years. An Israeli air strike targeted the research centre on July 22, Syrian state media and the Observatory reported .

PTI formally nominates Imran Khan as Prime Minister
The party will have to seek formal support from smaller parties or independents to elect the prime minister of its choice. Pakistan's parliament consists of the two houses: the National Assembly (lower house) and the Senate (upper house).

Years After Going Public, Elon Musk Wants To Take Tesla Private
If we were to go private, employees would still be able to periodically sell their shares and exercise their options. Here's what I envision being private would mean for all shareholders, including all of our employees .

Authorities: Body found isn't missing Iowa college student
It was the second time Wayne Cheney was spoken to by investigators and he continues to deny any involvement, reported Fox News . The investigation has garnered worldwide interest, which Tibbetts' family believes is the best way to crack the case.