- Elon Musk has posted details on his plan to take Tesla (NASDAQ:TSLA) private.
- "On August 2nd, I notified the Tesla board that, in my personal capacity, I wanted to take Tesla private at $420 per share. This was a 20% premium over the ~$350 then current share price (which already reflected a ~16% increase in the price since just prior to announcing Q2 earnings on August 1st). My proposal was based on using a structure where any existing shareholder who wished to remain as a shareholder in a private Tesla could do so, with the $420 per share buyout used only for shareholders that preferred that option."
- "After an initial meeting of the board’s outside directors to discuss my proposal (I did not participate, nor did Kimbal), a full board meeting was held. During that meeting, I told the board about the funding discussions that had taken place (more on that below) and I explained why this could be in Tesla’s long-term interest."
- "At the end of that meeting, it was agreed that as a next step, I would reach out to some of Tesla’s largest shareholders. Our largest investors have been extremely supportive of Tesla over the years, and understanding whether they had the ability and desire to remain as shareholders in a private Tesla is of critical importance to me. They are the ones who believed in Tesla when no one else did and they are the ones who most believe in our future. I told the board that I would report back after I had these discussions."
- Musk says his communications via Twitter are as a potential bidder, not on behalf of the company. Furthermore, he says he left the meeting with the Saudi fund reps with no doubts a deal could be closed ("funding secured") due to the fund's willingness to invest more than 5% in Tesla to take it private.
- Muska also says his best estimate at the moment is that approximately two-thirds of the shares owned by current investors would roll over into a private Tesla.
- TSLA +2.23% premarket to $363.46.
- Now read: The Privatization Of Tesla: Stray Tweet Or Game Changing News
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