Tesla forms panel to gauge taking company private
Mashable Tech Editor Pete Pachal on the fallout from Tesla CEO Elon Musk's tweet about potentially taking the company private.
Tesla said Tuesday its board formed a committee to respond to CEO Elon Musk’s tweet that he had funding to take his electric car company private.
Musk said last week that Saudi Arabia’s sovereign wealth fund had approached him about taking Tesla private.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 194.05 | +25.76 | +15.31% |
The board, which announced the committee is composed of three independent directors, said it had not received a formal proposal from Musk on taking the company private and had not come to any conclusion about whether such a move was advisable.
The independent directors are Robyn Denholm, Brad Buss and Linda Johnson Rice. Denholm is the chief operating officer of Telstra, a telecommunications company. Buss is the former chief financial officer of SolarCity, Musk's renewable energy company. Rice is the CEO of Ebony Media Operations and Johnson Publishing.
The board has given the committee authority to act on its behalf, including negotiating a deal to take Tesla private. It also has hired an independent legal counsel and will engage a financial adviser.
Musk tweeted on Monday that he was working with buyout firm Silver Lake and investment bank Goldman Sachs Group as financial advisers.