Elon Musk’s ‘420’ Surprise for Tesla (NASDAQ:TSLA): No Bids, No Offers

Elon Musk’s ‘420’ Surprise for Tesla (NASDAQ:TSLA): No Bids, No Offers

Elon Musk’s ‘420’ Surprise for Tesla (NASDAQ:TSLA): No Bids, No Offers

$TSLA

Tesla’s ($TSLA) board named a special committee of 3 friendly directors Tuesday to decide what to do about CEO Elon Musk’soffer to take the fledgling EV maker private at a surprising 420/share.

The board announced the move in Tesla’s 1st filing with the SEC since Mr Musk Tweeted on 7 August that he was considering taking the company private and had secured funding for a 420/share offer, valuing Tesla at $72-B.

That unorthodox announcement triggered investor lawsuits and an investigation by the US Securities and Exchange Commission, Mr. Musk and Tesla are under extreme pressure to bring order to the process of negotiating a deal.

Musk Tweeted on Monday he was working with Goldman Sachs Group Inc (NYSE:GS) and private equity firm Silver Lake as financial advisers, as of Tuesday, Goldman Sachs was still negotiating its terms of engagement with Mr. Musk.

Silver Lake has not signed officially as a Mr. Musk’s financial adviser.

Goldman Sachs and Silver lake declined to comment.

Mr. Musk’s effort to associate his potential bid with some of Wall Street’s most powerful institutions, even at the risk of misrepresenting their involvement, comes as pressure has been building on him to justify his pronouncement last week that funding for a deal had been “secured.”

Mr. Musk said Monday he had held talks with a Saudi sovereign fund on a buyout that would take Tesla off the Nasdaq exchange – an extraordinary move for what is now the United States’ most valuable carmaker. Tesla has a market value of $60-B, bigger than Detroit rivals General Motors Co (NYSE:GM) or Ford Motor Co (NYSEF), which produce millions more cars.

Tesla shares closed down 2.5% at 347.64 Tuesday.

Tesla said in its statement Tuesday the special committee had the authority to take any action on behalf of the board to evaluate and negotiate a potential transaction and alternatives to any transaction proposed by Mr. Musk. Note: the Tesla board is made up of friends and relatives of Mr. Musk.

HeffX-LTN’s Overall Outlook for TSLA Neutral to Bearish

Stay tuned…

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