The statement, issued by six of Tesla's nine-member board, suggests Musk's controversial tweets, which led to the company's stock being suspended from trading for a time on Tuesday, were less spontaneous than originally believed and not designed simply to punish Tesla stock short-sellers.
Mr. Musk on Tuesday proposed taking Tesla private at $420 a share, about 11% higher than the day's closing stock price. "Funding secured." - created what some attorneys are calling a potential battleground for lawsuits, regulator investigations and shareholder action. This included discussing how being a private company could better serve Tesla's long-term interests. The statement did not address how the $420-per-share price was established. "Finally, as the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company".
The board on Wednesday.
Some Wall Street analysts are skeptical of Musk's ability to gather the financial backing to complete such a deal.
"What does Musk mean by 'funding secured?"' asked Toni Sacconaghi, an analyst at Bernstein who has always been bearish on Tesla shares.
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Shares of electric car-maker Tesla opened slightly lower on Wednesday, one day after a proposal to go private pushed the company's stock near an all-time high.
China's Tencent Holdings Ltd, which took a 5-percent stake in Tesla past year, could also be a possible partner.
'Basically, I'm trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, ' Musk wrote.
"It's very hard to put leverage on this company", due to its negative cash flow and "operational issues", Scott said Wednesday on Bloomberg Television. 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. The move would also have little effect on Musk's current stake in the company, which rests at about 20 percent in current publicly traded form.
Company share prices, particularly in deals as giant as this one, are nearly always decided by corporate executives, board members or consultants who review market data and optimize for maximum value.
Other board members mentioned in the statement included Robyn Denholm, Ira Ehrenpreis, Antonio Gracias and Linda Johnson Rice.