Tesla’s board of directors may tell CEO Elon Musk to recuse himself as it explores the possibility of taking the company private, CNBC reports, citing people familiar with the matter.
According to the publication, the board plans to meet with financial advisors to determine how it will explore the idea of how to convert Tesla into a private company and has told Musk that he must consult a separate, personal set of advisors.
The board will probably form a smaller, special committee comprised of independent directors to analyze buyout proposals, CNBC reports.
According to the publication, Musk spoke with Saudi Arabia’s sovereign wealth fund about funding Tesla’s transition to becoming a private company, citing one source close to the matter.
Tesla did not immediately respond to a request for comment.
Musk shocked observers on Tuesday when he announced his desire to take the company private, saying he had the funding for such a deal secured and merely needed the proposal to pass a shareholder vote before it could go through. (He indicated via Twitter that he had investor support.)
But two days later, it’s unclear where that funding will come from. Tesla has yet to submit any regulatory filings that provide more detail into Musk’s proposal, and on Wednesday The Wall Street Journal reported that the Securities and Exchange Commission made an inquiry into Tesla about whether one of Musk’s tweets regarding the possibility of taking the company private was truthful.
Read CNBC’s full story here.
This is a developing story. Check back for updates.
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