The Tesla board has reported that it’s considering the proposal that was presented by Elon Musk who is the company’s chief executive. The statement was issued by six members of the board representing the electric car manufacturing company. The decision was made after the board learned of Musk’s Tweet that said he had the financial might to de-list the organization into a private corporation. According to reports, the board conducted several sittings in the past weeks to discuss the issue of the company going private. The board said that the sitting was held to see how the private idea would make the organization better. They were considering the long-term interests of the Institution. Elon Musk said in his statement that all the shareholders were going to receive $420 per share. The electric company was valued at more than $70 billion. Musk delivered this statement on Tuesday via his Tweeter account.
If the deal is to go through, then the deal would be the most massive of its kind. It would surpass the purchase of utility TXU Corp back in the year 2007 for an amount of $44 billion by a consortium. The six of the nine board directors delivered a brief statement saying that Musk had opened a discussion that proposed the company to go private. Elon delivered the proposal last week. The board said that the major part of the discussion was to address how the whole process was to occur. According to reports, the board of directors never included Elon Musk, Kimbal Musk his brother and Steve Johnson who is a venture capitalist.
The statement released by the board came amid questions hovering over how Elon Musk planned to disclose the potential de-listing of investors. Andrew Calamari, a partner of a particular law firm situated in New York, said that while organizations are permitted to make announcements via social media platforms, they should also make a simultaneous regulatory filing. Mr. Calamari noted that the style of the terms laid stroke was very irregular. He added that the terms also raised questions about Elon Musk’s decision. Calamari also questioned whether Elon Musk was earnest about what he intended to undertake. It was also not clear whether the Chief Executive had other motives such as influencing the stock price. According reports, the Tesla stock prices hiked to $368 after Elon Musk tweeted on Tuesday. However, trades later resumed that afternoon after the organization published an email from the chief executive to workers elaborating on the intended plans.