Tesla’s board says Musk started go-private talks last week

FILE PHOTO: Tesla Chief Executive, Elon Musk enters the lobby of Trump Tower in Manhattan, New York, US, January 6, 2017. Photo: Reuters

REUTERS – Tesla Inc Chief Executive Elon Musk started talks with the company’s board last week about taking the electric car maker private, some board members said on Wednesday.

“This included discussion as to how being private could better serve Tesla’s long-term interests, and also addressed the funding for this to occur,” the board members said.

Musk on Tuesday tweeted that he was considering taking the loss-making company private at $420 a share.

The board members said they had met several times last week with Musk and were evaluating the next steps.

The statement came from six board members, including James Murdoch, chief executive officer of Twenty First Century Fox and Brad Buss, who served as SolarCity’s Chief Financial Officer till 2016.

Other board members mentioned in the statement included Robyn Denholm, Ira Ehrenpreis, Antonio Gracias and Linda Johnson Rice. Tesla has nine board members, which also includes Musk, his brother Kimbal Musk, and venture capitalist Steve Jurvetson.

Several Wall Street analysts were skeptical about Musk’s ability to gather enough financial backing to complete the deal. But some said a deal could materialize if Musk succeeded in lining up the right funding.

Tesla’s shares were down 3 percent in early trading after closing up 11 percent at $379.57 on Tuesday.