Tesla didn't respond to requests for comment on Wednesday. First, we expect vigorous debate on the fairness of the proposed $420 price as we believe many shareholders are seeking a liquid security that has significant upside to the indicated take-private price.
Tesla and Musk haven't commented about the reported SEC investigation, but earlier today the company did release additional information about the possibility of going private.
But the board offered no further details of the proposal or its funding, sparking new questions about the feasibility of the master gambit Musk revealed in a surprise series of midday tweets on Tuesday.
Tesla's CEO also laid out what he envisions as the ideal path for going private.
There is no reference to Musk's Twitter account on the company's investor relations page under "investor communication", although Tesla's Twitter feed is included. 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.
One of the skeptics was analyst Frank Schwope who told Reuters "Who gives $30 to $50 (£23.2 - £3.8.8 / €25.8 - €43) billion to buy back the shares?"
"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.
Musk said that any move to take Tesla private would be subject to a shareholder vote.
"If Apple wanted to be in the auto business, this is how you do it-you step up, doesn't have to be $420 (per share), it could be another price".
SoftBank is now not interested in a deal for Tesla after earlier this year taking a stake in General Motors Co's self-driving unit, Cruise, Reuters reported earlier on Wednesday.
He said that would allow Tesla to "operate at its best, free from as much distraction and short-term thinking as possible".
They said this "included discussion as to how being private could better serve Tesla's long-term interests".
The Times article went on to mention that, if Musk has not in fact fully secured the funding, the assertion of which sent shares up, it would amount to securities fraud.
Mr Musk has feuded publicly with regulators, critics, short sellers and reporters, and some analysts suggested that less transparency would be welcomed by Musk.