If Tesla Inc (NASDAQ:TSLA) is in fact going to go private, then CEO Elon Musk may have to sit on the sidelines while a deal is hammered out. That’s the latest scuttlebutt in a week of never-ending drama surrounding the electric vehicle maker.
CNBC has the latest on Tesla.
The Tesla board of directors plans to meet with financial advisors next week to formalize a process to explore Elon Musk’s take-private proposal, according to people familiar with the matter.
Musk announced via Twitter this week that he hopes to take the automaker private, in what would be one of the biggest such deals in history.
Musk’s tweet about potentially taking Tesla private disrupted the markets on Tuesday, and trading in shares of the company were temporarily halted. Shares have been gyrating ever since, and there remain questions on whether or not Musk broke any laws by broadcasting a major piece of company news on Twitter.
The Tesla honcho has reportedly talked with Saudi Arabia’s sovereign wealth fund about funding a potential deal.
Tesla Inc shares rose $5.08 (+1.44%) in premarket trading Friday. Year-to-date, Tesla, Inc. (TSLA - Get Rating) has gained 13.20%, versus a 7.73% rise in the benchmark S&P 500 index during the same period.