The statement did not address how the US$420-per-share price was established. On an earnings call, he said that it was time to let the cat out of the bag, and confirm that the project had been in semi-stealth mode for the past two to three years.
"It's been a very quiet day", said Quincy Krosby, chief market strategist at Prudential Financial.
Tesla shares fell 2.4 per cent to US$370.34 on Wednesday after closing up 11 per cent on Tuesday.
In turn, an internal Tesla market could encourage smaller investors to hold onto their stock, lowering the amount of money, which could be tens of billions, that Musk must raise for the buyout.
If Tesla were to be taken private at the tweeted price of $420, the deal would be worth more than $80 billion and would represent one of the largest deals of this kind on record.
They were considering his proposal and that they'd met with him previously to explore the strategy, including "discussion as to how being private could better serve Tesla's long-term interests".
No major banks or investors have come forward to say that they have been contacted to help fund the take-private move - which, at about $70 billion, would be the largest LBO ever.
The company faces a make-or-break moment in its eight-year history as a public company as competition from European automakers is poised to intensify with new electric vehicles from Audi and Jaguar, with more rivals entering the market next year.
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In a follow-up tweet, Musk wrote: "I don't have a controlling vote now and wouldn't expect any shareholder to have one if we go private". He concluded by saying that this price swing is a problem rather he termed it as a ' distraction' for the companies well being and to all its employees who according to the company are the shareholders.
"I don't really understand the idea of what was suggested in the potential for them to go private", Dick Weil, CEO of Janus Henderson Group, said in an interview with Bloomberg Television.
The exact information that Musk communicated to the board about his plan could not be learned.
Public companies to report certain material events that shareholders should know about to the U.S. Securities and Exchange Commission. Tesla could seek SEC approval to make a tender offer exclusively to its small shareholders while retaining larger institutional owners, John Coffee, a professor of law at Columbia University, said in an interview.
Tesla disclosed in its most recent quarterly report that it has "received requests for information from regulators and governmental authorities", including the SEC.
In the letter to Tesla employees, Musk rejected that he was seeking greater control or wealth of the firm than the 20 % he already owns.
Tesla stock has declined sharply in light of the uncertainty, dropping to $354 midday Thursday.