Tesla Board's Statement Leaves Unanswered Questions

Board acknowledged discussions about taking the company private began last week
By Kate Seamons,  Newser Staff
Posted Aug 8, 2018 12:45 PM CDT
Tesla Board Says It Is Indeed Talking About Musk's Idea
In this July 8, 2018, photo, clouds are reflected above the company logo on the hood of a 2018 Model 3 sedan on display outside a Tesla showroom in Littleton, Colo. Board members at Tesla are evaluating CEO and Chairman Elon Musk’s $72 billion proposal to take the electric car and solar panel maker...   (AP Photo/David Zalubowski)

Elon Musk wasn't blowing smoke. The BBC reports on a three-sentence statement issued by six of Tesla's nine board members saying the board had "met several times over the last week" to discuss Musk's proposal to take the company private, which he announced via an unexpected tweet Tuesday. The talks "included discussion as to how being private could better serve Tesla's long-term interests" and the statement ends by saying the board "is taking the appropriate next steps to evaluate this."

The three board members who did not sign the statement are Musk, brother Kimbal Musk, and a board member who is on leave, reports the Wall Street Journal. At MarketWatch, Steve Goldstein flags some unresolved points: The statement didn't elaborate on Musk's claim of "funding secured" and raised but didn't answer a question of timing. "'Last week' predates Tesla's filing on Monday of its 10-Q with the Securities and Exchange Commission, which didn't mention such discussions. News of a takeover would certainly be considered material," he writes. Shares of Tesla are currently down about 1%. (More Tesla stories.)

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