"Over the past several weeks, we put in place a process led by a Special Committee of the Board to evaluate a proposal Elon was considering to take Tesla private. Yesterday, we held a Board meeting, during which Elon reported on the work he and his advisors have been doing in connection with this effort. Elon communicated to the Board that after having done this work and considered all factors, he believes the better path is to no longer pursue a transaction for taking Tesla private. After discussing this, we dissolved the Special Committee. The Board and the entire company remain focused on ensuring Tesla's operational success, and we fully support Elon as he continues to lead the company moving forward."
Joseph Spak of RBC Capital Markets -- who was attacked by Musk on the first quarter earnings call -- served up a good take on the situation via a note on Sunday:
"Bulls will likely be happy because they can participate in potential value creation. However, to us the bears have more ammo on the near-term sentiment move. It has become clear to us that funding was not secured or there was not sufficient interest to take the company private at $420/share. And we think credibility has taken a hit. Recall, Elon initially stated "investor support is confirmed" but now shareholder sentiment is "please don't do this." The letter also indicated that institutional shareholders explained they have limits on private investments and there is no proven path for retail investors to remain in a private Tesla (which Elon wanted) - two ideas many sussed out quickly. This reinforces the idea that this whole episode was not planned or fully thought out and thus could get added to the list of debatable statements from the company over the years. Further, we see potential ramifications from an SEC investigation and shareholder lawsuits. Though these are admittedly unquantifiable, they would be an incremental call on cash for a company with a weak balance sheet."