The SEC is reportedly looking into Musk's tweets about taking the company private, if Musk tweeted that he had "funding secured" for the process without actually having the money to back it up, it could be argued that the CEO was attempting to inflate Tesla stock prices with the tweet which could spell disaster for Musk.
The company said in the statement the special committee has the authority to take any action on behalf of the board to evaluate and negotiate a potential transaction and alternatives to any transaction proposed by Musk.
The first such suit was filed Friday by Tesla short seller Kalman Isaacs, who contended that the tweets were exclusively meant to manipulate the company's stock price - a move that's estimated to have cost Isaacs and those making similar bets upwards of $US1 billion ($1.4 billion).
In a statement earlier Monday, Musk also shared more details about who might fund such a deal.
Musk's disclosure, made in a blog post on Tesla's website, comes six days after the Silicon Valley billionaire shocked investors with a post on Twitter saying he was considering taking Tesla private at $420 a share and that funding was "secured".
Elon Musk said via Twitter on Monday evening that he was working with Goldman Sachs and Silver Lake as financial advisers on a proposal to take Tesla private. In his proposal, existing shareholders could remain as they are in a private Tesla, or agree to the buyout amount per share.
Musk said that since his Twitter post on the possibility of a deal the managing director of the Saudi fund had expressed support for proceeding subject to financial and other due diligence.
A Tesla sales and service centre is shown in Costa Mesa, California, US. He said the board's outside directors discussed going private without Musk or his brother Kimbal Musk, a board member, present. Tesla bought SolarCity that year.
Oh, dear. Azealia Banks, the rapper/walking controversy, hit Instagram late last night to lament an unfortunate weekend allegedly spent at the Los Angeles home of SpaceX founder Elon Musk.
Denholm, the first woman on Tesla's board, is chief operations officer of telecom firm Telstra and the ex-CFO of network gear maker Juniper Networks (JNPR.N).
Embattled electric auto manufacturer Tesla racked up its third class-action suit, filed today in California's Northern District Court, stemming from freaky and potentially unfounded tweets sent last week by CEO Elon Musk. Wilson Sonsini Goodrich and Rosati will be legal counsel for Tesla itself.