Musk Consulted Tesla Board Last Week About Privatization
Turns out the first privatization moves were made last week
The statement itself is short and sweet, but it does reveal that Musk approached the board last week, prior to yesterday’s world-shaking Tweets.
We believe this statement was released to address any possible stock manipulation concerns, as it shows that actual discussions have been underway for some time now and it wasn’t simply a matter of Musk just sounding off to drive TSLA up.
Here’s the statement in its entirety:
Statement from the following members of Tesla’s Board of Directors: Brad Buss, Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Linda Johnson Rice, and James Murdoch
PALO ALTO, Calif., Aug. 08, 2018 — Last week, Elon opened a discussion with the board about taking the company private. This included discussion as to how being private could better serve Tesla’s long-term interests, and also addressed the funding for this to occur. The board has met several times over the last week and is taking the appropriate next steps to evaluate this.
So, this should put to rest any concerns over it being “fake news” that Musk is seeking to go private with Tesla.
Lastly, we should note that there’s only one thing holding Tesla back from becoming private and that’s, as Musk stated:
Only reason why this is not certain is that it’s contingent on a shareholder vote.