Elon Musk Says Fund Offers To Help Take Tesla Private
Musk said that the Saudi investment fund had approached him several times over the last two years with offers to help the struggling company go private.
Tesla founder Elon Musk has announced that Saudi Arabia’s sovereign wealth fund has approached the electric car company with an offer to help take it private.
In a blogpost published on Monday Musk wrote that the Saudi investment fund – which owns 5% of Tesla – had approached him several times over the last two years with offers to help the struggling company go private. The last discussion appears to have taken place on 31 July when the fund’s managing director “expressed regret that I had not moved forward previously on a going private transaction with them, and he strongly expressed his support for funding a going private transaction for Tesla at this time”, wrote Musk.
The statement comes after Musk shocked investors by announcing via Twitter that he was considering ending Tesla’s stock market listing and taking the company private. That tweet led to a brief suspension of trading in Tesla’s shares and is now the subject of an investigation by the Securities and Exchange Commission, according to the Wall Street Journal, and legal action by investors.
Last Tuesday Musk said he planned to take Tesla private at $420 a share, a 20% premium to the share price that day and valuing the company at about $72bn. Musk said that that funding was secured but gave no further details.