Tesla Special Committee to Evaluate Possibility of Taking Company Private

Musk had said he would consider taking Tesla private if it's shares were valued at $420.

This is why, he says, he made a decision to use the "funding secured" phrase that caused such a commotion.

Musk said in the blog post that the Saudi fund had offered to take Tesla private multiple times, beginning early past year, with the goal of diversifying their investments away from oil. He said the board's outside directors discussed going private without Musk or his brother Kimbal Musk, a board member, present.

What's more, a deal would likely prompt a review but the Committee on Foreign Investments in the US, noted the paper.

Musk will work with Goldman Sachs and Silver Lake as financial advisors, the latter of which helped Michael Dell take his namesake computer firm private in 2013 in a $24.4 billion deal.

The 47-year-old billionaire's sudden interest in short shorts appears to have been sparked by his ongoing war against Tesla's short sellers, who have been betting for years that his vehicle company will fail.

"During the meeting, the Managing Director of the fund expressed regret that I had not moved forward previously on a going private transaction with them, and he strongly expressed his support for funding a going private transaction for Tesla at this time", Musk said in his statement.

He said he had "funding secured" for a deal, but didn't say where the money would come from.

Musk tweeted on Monday that he was working with buyout firm Silver Lake and investment bank Goldman Sachs Group as financial advisers. Silver Lake contributed $1 billion for the 2013 Dell transaction.

The company Tuesday said the committee hasn't received a formal proposal about a possible deal to go private. They are still above $341.99, their closing price the day before Musk tweeted his plan to take Tesla private, which pushed the shares up 11 percent to an 11-month high.

The special committee is composed of Brad Buss, Robyn Denholm and Linda Johnson Rice. Tesla bought SolarCity that year. Musk allegedly admitted that he "was angry at the company's critics".

The SEC is looking into whether Musk's initial announcement broke a rule preventing public companies from announcing such major financial plans if they don't intend to see them through, don't have financing secured, or are blatantly trying to manipulate the stock price. Rice, the first African-American and second woman to join the board, is CEO of Johnson Publishing Company and Chairman Emeritus of EBONY Media Holdings, the parent of EBONY and Jet brands, according to Tesla's website.

Musk, 47, touched off the process a week ago with a highly unconventional announcement of an effort to take a company off the public markets and has been drip-feeding details in tweets and blog posts that have preempted the board. The company has separately retained Wilson Sonsini Goodrich & Rosati for legal counsel.