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Tesla Inc said on Wednesday its board is evaluating chief executive Elon Musk's idea of taking the company private after he brought the matter up for discussion last week.

Board members said that Tesla boss Elon Musk and had held several meetings about the move in the past week.

In a release, board members Brad Buss, Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Linda Johnson Rice, and James Murdoch said Musk opened the discussion last week.

The issue of share accumulation by outsiders emerged only recently as reports that Saudi Arabia's public investment fund had built up a stake from 3 to 5 percent after its offers of purchase of new shares in Tesla were spurned by the company.

Some Wall Street analysts are skeptical of Musk's ability to gather the financial backing to complete such a deal.

Musk's plan to take Tesla private would give all shareholders the option to stay as investors in the now-private company or to sell their shares at $420 per share, which represents a premium of about 20 percent based on the stock price during the second quarter earnings call at the end of June.

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On Tuesday morning, Musk emailed a statement to Tesla employees.

On Wednesday, Tesla's board said it was evaluating the proposal. In his first tweet he said funding was secured but provided no details.

The surprise announcement was sandwiched between other provocative tweets and, among other things, promptly caused a temporary halt in the trading of Tesla shares on Wall Street while also causing some to doubt if Musk was being serious.

"Just because" Musk wants it at $420 "doesn't mean that there aren't other people who might be willing to come in with another transaction that would be more beneficial to shareholders", Pitt said. Tesla is a legendary cash-burner, with roughly $10 billion in debts and $2 billion in reserves, and Musk would probably need in the tens of billions of dollars to buy out shareholders at the right price.

Several members of Tesla's board issued a joint statement on the company's investor-relations site. "That sense of the market, investors-so critical for a company like Ford". Company share prices, particularly in deals as giant as this one, are nearly always decided by corporate executives, board members or consultants who review market data and optimize for maximum value. They did not include Mr Musk, his brother Kimbal Musk, and Steve Jurvetson, a venture capitalist.


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