The statement, issued by six of Tesla's nine-member board, suggests Musk's controversial tweets, which led to the company's stock being suspended from trading for a time on Tuesday, were less spontaneous than originally believed and not designed simply to punish Tesla stock short-sellers.
"Having complex stakeholders is great", Farley said in response to a question about being public vs. private from FoxNews.com Automotive Editor Gary Gastelu at Ford's headquarters in Dearborn, Michigan.
It's possible Musk could persuade some large institutional investors to remain shareholders in the private company, which could reduce his funding needs, Sacconaghi said.
Musk said in a series of tweets that he had the funding and investor support.
"Last week, Elon opened a discussion with the board about taking the company private", the board members wrote.
In a later statement to employees and posted on Tesla's blog, Musk explained: "Being public. subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term".
Investors must now weigh whether giving even more freedom to Musk, and the extra debt the deal may incur, is worth it.
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Tesla's shares were down 2.1 percent at $371.70 (288 pounds) on Wednesday after closing up 11 percent on Tuesday.
He said that would allow Tesla to "operate at its best, free from as much distraction and short-term thinking as possible".
Musk hasn't been quiet about his disdain for short sellers.
If the content of Musk's tweet was not true, lawyers argue, it could expose Tesla's mercurial chief executive officer and the company to regulatory action and private lawsuits. "How could Tesla possibly fund such a large transaction?" 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.
"Only reason why this is not certain is that it's contingent on a shareholder vote", Musk said in one tweet.
It's unclear who Musk secured funding from.
While Tesla's board of directors might approve Musk's idea of taking the automaker private, current shareholders have the final say. Shareholders would also have to be willing to potentially get less information about the company's performance and have less opportunity to sell their shares if it is no longer publicly traded.
Will investors stick with a private Tesla?
The most obvious equity partners for Musk would be a sovereign wealth fund such as Saudi Arabia's Public Investment Fund (PIF), which sources said on Tuesday had taken a stake of just below 5 percent in Tesla, or a major technology investment fund such as SoftBank Group Corp's Vision Fund, bankers said.