Tesla board evaluating Elon Musk's proposal to take company private

Flags fly over the Tesla Inc. Gigafactory 2 which is also known as RiverBend a joint venture with Panasonic to produce solar panels and roof tiles in Buffalo New York

At Elon's target buyout price of $420 per share, that would put the company's outstanding share value at somewhere around $69 billion - two numbers that, given Elon's taste in jokes, are probably very intentional.

Board members at Tesla are evaluating CEO and Chairman Elon Musk's $72 billion proposal to take the electric vehicle and solar panel maker private.

"Earlier today, I announced that I'm considering taking Tesla private at a price of $420/share".

It's unclear if Musk has misled investors, let alone whether he has done so intentionally.

"T$3 he reason for doing this is all about creating the environment for Tesla to operate best", the email reads. As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders.

Musk later clarified in a blog post that "a final decision has not yet been made", while touting the benefits of running a private company away from the "enormous pressure" of Wall Street's quarterly earnings cycle. Musk's money-losing and cash-burning company is an unlikely candidate for debt investors to be willing to help go private.

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FILE - In this October 13, 2015, file photo, the Twitter logo appears on a phone post on the floor of the New York Stock Exchange. He did this only after learning of Apple's decision, Byers said, explaining why Facebook announced its decision at 3 a.m.

The news comes one day after Musk said he was considering taking Tesla private.

Musk owns an nearly 20 per cent stake in Tesla, meaning he'd still need roughly $70 billion in financing to take Tesla private. He also stated that this is not an attempt to assume more control over his company - Musk owns approximately 20 percent of Tesla right now, and he doesn't see that changing after the company goes private.

Musk is already CEO of another private company: SpaceX.

Musk has promised a sustained net profit starting in the third quarter. But going private could also complicate Tesla's effort to build a mainstream electric auto by removing the easy access to capital the Wall Street darling has enjoyed.

Tesla Inc Chief Executive Officer Elon Musk'splan to take the electric auto maker private raised doubts among Wall Street analysts about the billionaire' s ability to gather enough financial backing to complete the deal. It was pretty quick and seemed to handle well enough.

Tesla shares fell as much as 3.4 per cent to US$366.52 before the start of regular trading, though they pared declines after the board statement. "And if you stay as a shareholder you get less information than before and you depend more and more on Elon Musk". The move is estimated to require north of $50 billion to buy out the public shareholders. The talks touched on taking Tesla private, but failed to progress due to disagreements over ownership.

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