Tesla board mulls de-listing plan

Flags fly over the Tesla Inc. Gigafactory 2 which is also known as RiverBend a joint venture with Panasonic to produce solar panels and roof tiles in Buffalo New York

Tesla stock closed Tuesday at $379.57.

Buying out all of Tesla's stock at $420 a share would value the company at over $80 billion - and although Musk said he had financial backing for it, he didn't give details.

Musk later clarified in a blog post that "a final decision has not yet been made", while touting the benefits of running a private company away from the "enormous pressure" of Wall Street's quarterly earnings cycle.

Musk took Tesla shareholders and the stock market by surprise on Tuesday by announcing on Twitter he was considering taking the loss-making electric car-maker private at $420 U.S. a share.

But the biggest motivator for Musk in taking the company private is viewed as the freedom to pursue larger long-term goals instead of short-term financial ones, and this includes his view of Tesla as one of the pieces in a larger puzzle that includes homeowner-controlled energy trading, solar energy accumulation and storage, and autonomous electric trucking.

Six members of Tesla's board of directors issued a statement Wednesday, acknowledging that discussions have been ongoing since last week about going private.

On Tuesday morning, Musk emailed a statement to Tesla employees.

GOP Rep. Chris Collins Indicted on Insider Trading Charges
They are said to have avoided at least $768,000 in potential losses by selling before the negative trial results were made public. Collins, a three-term incumbent representing New York's 27th congressional district, is facing re-election this fall.

The move to take the company public would remove Musk, who himself has a 20 percent stake, from the public arena - and contentious criticism.

Musk tweeted on Tuesday that he had secured funding for the plan, but he has not provided details or evidence, and several securities attorneys told Reuters that Musk could face investor lawsuits if it was proven he did not have secure financing at the time of his tweet.

Taking Tesla private would also free Musk from his tumultuous relationship with Wall Street as a whole, which had been consuming a significant portion of his time as well as a significant amount of all news surrounding the automaker.

Musk has promised a sustained net profit starting in the third quarter. Many initially thought it was Elon Musk's attempt at a bad joke about marijuana, because "420" has always been associated with pot.

SoftBank is now not interested in a deal for Tesla after earlier this year taking a stake in General Motors Co's (GM.N) self-driving unit, Cruise, Reuters reported earlier on Wednesday. Saudi Arabia's Public Investment Fund, a major backer of the Vision Fund, has built a $2 billion stake in Tesla already.

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

Tesla's stock has swung wildly in the past several years, hit by the company's production issues as well as Musk's own explosive remarks on Twitter that have turned off investors. The move is estimated to require north of $50 billion to buy out the public shareholders.

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