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Tesla board to discuss taking company private, ask Musk to recuse himself from talks: report

Tesla board to discuss taking company private, ask Musk to recuse himself from talks: report
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Tesla board members expect to meet next week with financial advisors to discuss chairman and CEO Elon Musk's proposal to take the company private, sources familiar with the discussions told CNBC.

Board members will likely tell Musk to recuse himself from the talks, one source told CNBC, while they discuss taking the company private.

The development comes days after Musk tweeted that he was considering taking Tesla private at $420 per share. "Funding secured," Musk said Tuesday afternoon, offering little initial context. “Shareholders could either to sell at 420 or hold shares & go private,” he later added.

The Securities and Exchange Commission (SEC) has reportedly inquired with Tesla about Musk’s tweets regarding the matter, and are probing the legitimacy of Musk's comments and why he made the disclosure on Twitter instead of through a formal filing.

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Trading on Tesla's stock was stopped Tuesday following Musk's tweets, which sent shareholders and reporters into a scramble.

 

In an internal letter to Tesla employees, Musk confirmed he was considering taking the company private in order to free it from "short-term thinking" and other "distractions."

"Basically, I’m trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, and where there is as little change for all of our investors, including all of our employees, as possible," Musk wrote in the letter.

A former SEC chairman told MSNBC this week that Musk could face penalties if he is not being truthful about securing full funding before posting the tweet.