Tesla board forms committee to consider going private

Tesla's board of directors today said it formed a special committee to consider chief executive Elon Musk's proposal to take the electric auto giant private.

Musk disclosed yesterday that he had been in talks with Saudi Arabia's sovereign wealth fund and other potential investors on a plan that would delist Tesla from the stock market.

By going private, Tesla could operate without requirements for financial reports and other pressures of a publicly traded firm.

But it could also lose visibility and limit its ability to raise capital.

A statement today from Tesla's board said the special committee "has the full power and authority of the board of directors to take any and all actions on behalf of the board of directors as it deems necessary to evaluate and negotiate a potential going private transaction and alternatives to any transaction proposed by Mr. Musk."
He said the Saudis were interested "because of the important need to diversify away from oil" and added that the sovereign fund "has more than enough capital needed to execute on such a transaction."