In a letter to shareholders after his tweet on Tuesday, Musk fleshed out his idea, suggesting they would get the option to sell their shares for $420 United States each or remain investors in a private Tesla, out of the glare of Wall Street and its need for quarterly results.
Musk later clarified in a blog post that "a final decision has not yet been made", while touting the benefits of running a private company away from the "enormous pressure" of Wall Street's quarterly earnings cycle.
Tesla directors have said they knew about Elon Musk's surprise proposal to privatise the money-losing vehicle maker before he tweeted about it and have met several times in the past week to discuss the proposal.
Tesla's board on earlier on Wednesday said it was evaluating taking the company private, which would be the biggest leveraged buyout of all time.
The news comes one day after Musk said he was considering taking Tesla private.
"Last week, Elon opened a discussion with the board about taking the company private".
Musk also wants Tesla's employees to remain shareholders. He now owns 20 percent of the company, so more than $60 billion is needed to buy the business from public shareholders. Musk's money-losing and cash-burning company is an unlikely candidate for debt investors to be willing to help go private.
NY congressman charged with insider trading
The company's stock price fell more than 90 percent after results of the drug trial were released publicly, the documents state. Also charged is Collins's son, Cameron Collins, and the father of Cameron's fiancee, Stephen Zarsky.
Elon Musk's tweets early on Tuesday caused plenty of speculation and controversy.
An acquisition of Palo Alto, California-based Tesla by overseas investors would likely trigger a national-security review by the Committee on Foreign Investment in the U.S. The panel, which has stepped up its scrutiny and blocked some deals lately, could impose conditions, including limits on control of the company and information sharing.
"I'm trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, and where there is as little change for all of our investors, including all of our employees, as possible".
Elon Musk, founder, CEO and lead designer at SpaceX and co-founder of Tesla, speaks at the International Space Station Research and Development Conference in Washington, U.S., July 19, 2017. Saudi Arabia's Public Investment Fund, a major backer of the Vision Fund, has built a $2 billion stake in Tesla already. The move is estimated to require north of $50 billion to buy out the public shareholders.
Tesla's stock has swung wildly in the past several years, hit by the company's production issues as well as Musk's own explosive remarks on Twitter that have turned off investors.
But the board offered no further details of the proposal or its funding, sparking new questions about the feasibility of the master gambit Musk revealed in a surprise series of midday tweets on Tuesday.