Tesla Special Committee to Evaluate Possibility of Taking Company Private


Meanwhile, Musk faces scrutiny of his tweet on secured funding.

"Going back nearly two years, the Saudi Arabian sovereign wealth fund has approached me multiple times about taking Tesla private". He later clarified that the funding he referred to was from the Saudi Arabian sovereign wealth fund, which approached Musk with the proposal to de-list the company as early as two years ago, though no formal agreement has been made.

So, should you buy, sell or short Tesla?

CNNMoney's "Markets Now" streams live from the NYSE every Wednesday at 12:45 pm ET.

He said that since his Twitter posts on the possibility of a deal the managing director of the Saudi fund had expressed support for proceeding subject to financial and other due diligence. The SEC has asked Tesla for more details about Musk's tweets and proof that he has secured the necessary funding for the transaction.

On 7 August, Musk surprised the investment world with a Twitter announcement that he was considering taking Tesla private and that the funds needed to do so - which some financial analysts estimate at more than $70 billion - were "secured".

Elon Musk Tech pioneer
Elon Musk Tech pioneer

The Securities and Exchange Commission has inquired about Musk's claims, which, if found to be untrue, could cause greater problems for Tesla chief executive.

Goldman declined to comment on Tuesday.

Shares in Tesla, which are still well below highs hit when Musk initially raised the prospect of the transaction last week, inched up 0.7% in trading before the bell. Musk says he has stayed in contact with the Saudi fund and has been reaching out to other investors ever since. "Among other things, this will allow me to obtain a more precise understanding of how many of Tesla's existing public shareholders would remain shareholders if we became private".

Embattled electric vehicle manufacturer Tesla racked up its third class-action suit, filed today in California's Northern District Court, stemming from freakish and potentially unfounded tweets sent last week by CEO Elon Musk. Musk allegedly admitted that he "was angry at the company's critics".

Tesla's board said on August 8 that Musk had held talks with the directors in the previous week on taking the company private.