Tesla forms three-member panel to decide on any Musk proposal


Elon Musk said via Twitter on Monday evening that he was working with Goldman Sachs and Silver Lake as financial advisers on a proposal to take Tesla private. Her main issue was with Grimes, who allegedly "ghosted" on her to tend to Musk, who Banks said was "too stupid to know not to go on twitter while on acid". According to Musk, the tweet followed a meeting with Saudi Arabia's Public Investment Fund.

Elon Musk has confirmed plans to take Tesla private with the backing of a Saudi Arabian sovereign wealth fund.

Musk disclosed on Monday that he had been in talks with Saudi Arabia's sovereign wealth fund and other potential investors on a plan that would delist Tesla from the stock market.

Shares of Tesla slipped $3.15, or less than 1 percent, to $353.26 in early trading Tuesday.

"His suit states that "the fraudulent nature of Musk's statements was uncovered over the next two days when neither Tesla nor Musk substantiated Musk's claim that there was secure financing for a going-private transaction at $420 [$AU577] a share" and causing the stock price to drop from "$379.57 [$AU521] per share, on August 7, 2018, to close at $352.27 [$AU484] per share, on August 9, 2018". Reports that it would cost US$70 billion to take Tesla private, Musk said, were a stretch, adding that it would actually cost less than that.

The Saudi sovereign fund already owns about 5 percent of the outstanding Tesla shares, Musk said.

Yasir Othman al-Rumayyan, managing director of the PIF, referred Reuters to the corporate communications team, which did not immediately respond to a request for comment.

That tweet may have created a sticky situation for Musk as it appears the funding may not be locked up just yet.

Securities lawyers said USA law requires executives and companies to have a "reasonable basis" on which to make statements, meaning the fact Musk said he believed he had secured a verbal agreement for the funding after the July 31 meeting could put him on a firmer footing with the SEC.

Wall Street has voiced doubts about Musk's ability to pull off what could be the largest-ever go-private transaction, valued at as much as $72 billion.

"No assurances can be given regarding the likelihood, terms and details of any proposal or potential going private transaction, that any proposal made by Mr. Musk. will be accepted by the special committee", the statement said.