Board members at Tesla Motors evaluating Elon Musk's buyout proposal

(Illustration) Board members at Tesla are evaluating CEO and Chairman Elon Musk’s USD 72 billion proposal to take the electric car and solar panel maker private.

Six of nine members say in a statement Wednesday that Musk began talking with the board about the move last week, Associated Press reports.

This included discussing how being a private company could better serve Tesla’s long-term interests.

Musk announced the bombshell move Tuesday on Twitter, writing that he had secured funding to buy Tesla Inc.’s shares at USD 420 each.

Buying Tesla in its entirety would cost USD 72 billion, based on the company’s outstanding stock as of July 27. But Musk probably doesn’t need that much financing because he owns a roughly 20% stake in the company.

He is also creating a special fund that will allow existing shareholders to retain their stakes in Tesla in the private market, if they want.

Shares rose 11 percent Tuesday but fell slightly Wednesday to USD 377.96.

One of the biggest questions surrounding the buyout is Tesla’s long history of losing money while it has been investing in electric car technology and ramping up production of its vehicles.

The company has only posted a quarterly profit twice in its history and has never made money during an entire calendar year. Tesla lost another USD 717.5 million in its most recent quarter.

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