Tesla's shares were down less than one per cent at $376.31 United States in morning trading on Wednesday after closing up 11 per cent at $379.57 USA on Tuesday. It rose slightly in early trading, moving to about $375 per share by 10:45 a.m. ET.More news: Japan marks 73rd anniversary of Hiroshima atomic bombing amid Korea denuclearization hopes
Musk has 22.3 million followers on Twitter, and Tesla's share price was already rising after the Financial Times reported that Saudi Arabia's sovereign wealth fund had taken a $2bn stake in the company. The board said only that Musk had "addressed the funding for this to occur". The board has met several times over the last week and is taking the appropriate next steps to evaluate.
As Tesla's board of directors rallied Wednesday behind chief Elon Musk's extraordinary push to take the all-electric automaker private, a growing contingent of investors, analysts and former regulators voiced their doubts that the deal would ever take off. "That sense of the market, investors-so critical for a company like Ford".More news: Manchester United 'offered Miralem Pjanic in Paul Pogba bid'
"W$3 e wonder how fully fleshed out Elon's tweets yesterday were", he wrote in a note. Among these issues, short-sellers have especially posed a continuous problem for Tesla, and it's no surprise Musk would like to put an end to the roller coaster that their actions can cause, with him highlighting the view that Tesla is one of most shorted companies on Wall Street. The talks covered both the reasons for doing so - which Musk also laid out in an email to employees that was subsequently posted online - as well as the funding.
Two of the potential stumbling blocks to Musk's plan include the stock price premium not being enough to get the existing shareholders on board to support the sale and coming up short on the announced funding to complete the transition. The move would also foreclose the option of selling more stock to raise cash every year, a move which Musk has disfavored in recent years.More news: Hurricane John absorbs tropical storm off Mexico
"Distraction or not, the move feels right even if Musk is downplaying how supportive public markets have been". 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.