Finance

Musk says Saudis support taking Tesla private

Tesla chief executive Elon Musk said the Saudi Arabian sovereign wealth fund has expressed support for funding a deal that could take the electric car maker private. Roselle Chen reports.

Tesla chief executive Elon Musk wrote a post on Tesla’s website saying that he is talking to Saudi Arabia’s sovereign wealth fund and other potential backers about his plan to take the electric car-maker private.

But he also said financing is not yet nailed down.

Musk’s disclosure comes six days after he shocked investors saying on Twitter that he was considering taking Tesla private at $420 a share and that funding was “secured.”

Kelley Blue Book’s Akshay Anand:

KELLEY BLUE BOOK, EXECUTIVE ANALYST, AKSHAY ANAND,

“This is something that Tesla released to say, ‘You know what, we have done our due diligence. You guys asked about it. We’ve done some of our due diligence, and here is kind of a teaser of what we’ve done. We’re not going to give all the details.’ So, I think this was, in essence, a way to get people off their backs a little bit, being honest. Let’s just hope this doesn’t become a distraction from what truly matters for Tesla, which is making the Model 3 and making it with good quality, right? Because at the end of the day, Tesla is a car company and their goal is to put out the best product possible. So, hopefully, you know, soon this all gets resolved, and it can go back to making cars.”

Musk’s tweet about taking Tesla private is being investigated by the U.S. Securities and Exchange Commission, according to the Wall Street Journal.

It’s also the subject of lawsuits brought against him by investors.

Tesla stock was down on Monday.


Associated Links

  • Kelley Blue Book
  • Tesla
  • Twitter
  • Wall Street Journal
  • Nationality
  • Economy of the United States
  • Science and technology in the United States
  • Elon Musk
  • Hyperloop
  • American people of German descent
  • White South African people
  • Nikola Tesla
  • Saudi Arabia
  • Tesla, Inc.
  • Tesla Roadster

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