Tesla board will evaluate Musk's proposal to take the company private

Tesla might be looking at some dramatic changes in its corporate setup in the coming months. In a precipitous tweet on Tuesday, company CEO Elon Musk stated his plans to take the company private. This was followed by an internal email in which Musk had stated his reasons for doing so. 

The internal email and the tweet, however, suggested that the plan was not final and that Musk was only giving it a thought. A serious thought for that matter. In the most recent development, the company' board issued a statement stating that Musk's move would be beneficial for Tesla's long-term interests. 

Here's what the complete statement read: 
Last week, Elon opened a discussion with the board about taking the company private. This included discussion as to how being private could better serve Tesla’s long-term interests, and also addressed the funding for this to occur. The board has met several times over the last week and is taking the appropriate next steps to evaluate this.

Musk's internal email to all its employees on Tuesday stated that he was considering taking the company private at price of $420 per share. 

According to Musk, going private would allow the company to 'operate best'.

In his statement, Musk stated that being a public company, the company was prone to wild swings in the stock price that could be a major 'distraction' for everyone working at Tesla. 

The electric car company lost more than $717.5 million in the second quarter. But ended up with $2.2 billion in cash at the end of June. That meant Tesla burned through $430 million worth of its cash stockpile last quarter as it finally hit production targets for the Model 3 sedan, which is much less than many expected reported CNN. 

Poor reports and its inability to achieve a difficult target to manufacture 5000 model 3s in a week, had put Musk in a tussle with all the investors who started predicting that the company would fail. Hence, in his email, Musk stated that the shareholders would be given a choice to either sell their sticks or keep them. This also included its employees who owned the company's shares. 

The Model 3 is Tesla's first car that's aimed at a more mass-market audience, and it debuted to great fanfare, with thousands clamoring to put down $1,000 reservations for the vehicle

Additionally, Musk proposed that the employees would remain the shareholders even if the company goes private which would enable them to share in the growing value of the company. 

Musk's email clearly stated that he had no plans of merging Tesla and SpaceX and that they would continue to have separate ownership. However, according to Musk, future plans that he has for Tesla is similar to that of SpaceX's

Concluding his statement, Musk said that the decision would be finalized through a vote of all the shareholders and that going private would provide the company with enormous opportunities.