Goldman, Silver Lake Advice Tesla On Going Private Plan

Andrew Cummings
August 14, 2018

The committee, made up of three independent directors, said Tuesday that it has not received any formal proposal from Musk.

In a prepared statement Tuesday, Tesla said that "no assurances can be given regarding the likelihood, terms and details of any proposal or potential" to go private. These comments sparked suspicion that Musk could be manipulating the stock price of Tesla, unless he was stating facts, and this suspicion in turn prompted the revelation.

As for the money to be paid by the Saudis should a deal be reached, Musk says the sum is nowhere near the $70 billion the media talks about for the simple reason that the fund will not buy all the company's stock, but only that of the people who do not remain with the company if it is private.

Elon Musk said via Twitter on Monday evening that he was working with Goldman Sachs and Silver Lake as financial advisers on a proposal to take Tesla private.


Musk announced last week on Twitter and on Tesla's website that he was considering taking automaker Tesla private and had secured the funding to do so.

Musk added that most capital for the deal would come from equity and it would not be "wise" to burden the company with added debt.

FILE PHOTO: A Tesla sales and service center is shown in Costa Mesa, California, U.S., June 28, 2018.

California-based Tesla has become one of the most valuable automakers on expectations it will disrupt the industry, although it produced only slightly more than 100,000 vehicles previous year. It was Tesla's last big deal and was criticized by some on Wall Street because the company, founded by two of Musk's cousins, had seen its business shrink before the takeover.


Denholm, the first woman to join Tesla's board, is chief operations officer of telecom firm Telstra and the ex-CFO of network gear maker Juniper Networks. In a statement published on the company's official website, the Tesla CEO also admitted that he was first approached for the move nearly two years ago.

Azealia Banks claims she spent a freaky weekend at Elon Musk's house, while waiting to work with his girlfriend Grimes in a collaboration that never happened - but the Tesla CEO is insisting he's never even met her.

One director, Steve Jurvetson, is now on leave of absence following allegations of sexual harassment.

In essence, what was initially considered to be a stupid weed joke has cost Musk the goodwill of Tesla fans (or at least those seeking to profit from his offer to go private at $US420 [$577]), deepened his already contentious relationship with short sellers, led to an SEC investigation, and could potentially cost him losses in court.


Latham and Watkins LLP has been retained by the committee as its legal counsel.

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