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Tesla board considers Musk's privatisation proposal

By Wale Azeez, business reporter
Tesla board members said on Wednesday that chief executive Elon Musk began discussions about taking the company private as long ago as last week.
Issuing a statement before markets opened, six of Tesla's nine directors, including 21st Century Fox's chief executive James Murdoch, said that they had met to discuss Mr Musk's privatisation proposal "several times" since then, and were now evaluating the next steps.
"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," they said.The statement appeared to provide some calm rationality to the circus atmosphere that Twitter often generates around Tesla's chief executive.Shares in Tesla surged by more than 7% after a message posted the previous morning on Mr Musk's verified Twitter account said: "Am considering taking Tesla private at $420. Funding secured."When asked on Twitter whether he was serious, Musk replied: "Yes....It saves a lot of headaches."The Nasdaq stock exchange halted trading in Tesla shares around 2.08pm local time, by which time they had surged 11% on the day to $379.57.At $420 per share, a deal to go private would now represent a 13.5% premium to Tesla's closing price one Tuesday, valuing Tesla at about $72bn (€56bn).:: Has Musk got the money to take Tesla private?Shares were up 0.4% as markets opened on Wednesday.Earlier, the Financial Times reported that Saudi Arabia's sovereign wealth fund had built an undisclosed stake of between 3% and 5% in Tesla.
Mr Musk's statement came at a time when the electric car maker faces financial constraints, and barely a week after the company announced it had made its biggest net loss to date of $717.5m (€547.6m) during the second quarter ending in June.
Am considering taking Tesla private at $420. Funding secured.— Elon Musk (@elonmusk) August 7, 2018
In a blog post by Musk on the Tesla website, he said: "I fundamentally believe that we are at our best when everyone is focused on executing, when we can remain focused on our long-term mission, and when there are not perverse incentives for people to try to harm what we're all trying to achieve."This is especially true for a company like Tesla that has a long-term, forward-looking mission. SpaceX is a perfect example: it is far more operationally efficient, and that is largely due to the fact that it is privately held."The company had a market value of $58bn as of Monday's close.By the time share trading was halted on Tuesday morning, its value had shot up to $63.8bn.Musk owns nearly 20% of the company.He has been under intense pressure this year to prove he can deliver on his promise to turn his money-losing company into a profitable higher-volume manufacturer.
Tesla board considers Musk's privatisation proposal

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Tesla said it met targets to produce 5,000 Model 3 vehicles per week by the end of its second quarter.
Last week Tesla said it had achieved its goal of producing 5,000 Model 3 vehicles per week by the end of its second quarter in June, but burned through $739.5m (€565.2m) in cash during the period in order to do it.
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The US Securities and Exchange Commission (SEC) allows companies to use social media outlets like Facebook and Twitter to announce key information in compliance with its "fair disclosure" rules, as long as investors are alerted about which social media outlets will be used to disclose such information.The Wall Street regulator did not immediately respond to a request for comment on Musk's tweet.
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