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

Reuters  Rebecca Cook

Reuters Rebecca Cook

Musk, on Tuesday, announced he was mulling buying the company out for $420 per share. Shares were down 3 percent in premarket trading after closing up 11 percent at $379.57 on Tuesday.

Elon Musk is serious enough in his publicly-stated interest about taking Tesla private that the board of directors has already discussed the matter several times.

"If the market believes that Elon Musk's financing is in place and the chances of a buyout is high, we should see short covering in size, driving Tesla's stock price higher in the short term as short sellers attempt to close out their positions at lower than the $420 takeout price", said Ihor Dusaniwsky, a managing director at S3 Partners.

Most analysts were skeptical, but some said a deal could materialize if Musk succeeded in lining up the right funding.

Points lead a dream admits Hamilton
I think our work ethic has been very strong and the team morale is better than ever and the spirit is better than ever". Last term, after the summer break Hamilton won five of the first six races and finished second in the other.

China's Tencent Holdings Ltd, which took a 5-percent stake in Tesla past year, could also be a possible partner. "I'm trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, and where there is as little change for all of our investors, including all of our employees, as possible".

"They're being bombarded with questions that we don't think are as relevant to the long-term value of the company", said Sam Korus, an analyst for ARK Investment Management, which had 443,874 Tesla shares as of June 30.

Tesla Inc Chief Executive Officer Elon Musk'splan to take the electric vehicle maker private raised doubts among Wall Street analysts about the billionaire' s ability to gather enough financial backing to complete the deal. Tesla's other board members are Musk, his brother Kimbal Musk and venture capitalist Steve Jurvetson.

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