Tesla’s Board Wants Funding Details on Musk's Delisting Plan

August 10, 2018 at 12:34 AM

Tesla Inc.’s board has asked CEO Elon Musk to describe the funding he says he has arranged to take the electric car company private, sources tell Reuters.

The U.S. Securities and Exchange Commission seeks the same details. Musk indicated in a nine-word tweet on Tuesday that funding to delist Tesla at $420 per share had been “secured.” The SEC also wants to know why Musk announced the plan via social media rather than a formal filing to the commission.

Tesla’s board has discussed the general idea of going private. But a Reuters source says it still has no details from Musk about who would provide the roughly $70 billion in funding required.

Tesla’s share price, which started the week at $345, closed at nearly $380 on Tuesday after Musk’s tweet. But growing skepticism among analysts and investors prompted a two-day slide to a closing price of $352 yesterday.