Saudi Arabia is exploring how it could bankroll Elon Musk's ambitious plan to take Tesla private, as burnt short-sellers sue the electric vehicle entrepreneur over his bombshell tweet last week. He said the Saudi fund approached him multiple times about going private starting nearly two years ago and that he left a July.
Musk in his blog elucidated his reasons of making a public announcement.
"When you have these grand-vision companies, the founders - these leaders - don't want to have some investors have control", Gene Munster, a managing partner at venture capital firm Loup Ventures said in a Bloomberg TV interview, talking about the idea that Musk wouldn't want to bring in any large new shareholders. PIF explores ways on how it could be involved in the possible going-private deal, for which Musk prefers to have a larger group of investors instead of just one or two large stakeholders, Bloomberg's sources say.
He wrote that in the blog and the August 7 tweet that he was speaking for himself as a potential bidder for the company.
The SEC, which already had been gathering information about Tesla's public pronouncements on manufacturing goals and sales targets, is intensifying scrutiny of the company's statements in the wake of Musk's tweet, people familiar with the matter have said.
Students Scramble For Info After Saudi Arabia Pulls Canadian Scholarships
The Saudi Kingdom was less than thrilled about Canada's "interference", saying it had no business to meddle in its local affairs. Canadian authorities said they are " seriously concerned " about Saudi Arabia's freeze of new trade between the countries.
The 47-year-old investor and engineer stunned financial markets on Tuesday when he said on Twitter that he was considering a take-private deal for Tesla, an auto manufacturing pioneer that developed the world's first luxury all-electric sedan vehicle. CEO Elon Musk's audacious plan to take the carmaker private is distracting dealmakers from a normally quiet August spent in the Hamptons or Southern France. But Tesla shares were up only minimally in early trading, suggesting investors are yet to be convinced. Since the meeting, the men have continued discussions and the managing director has expressed support "subject to financial and other due diligence and their internal review process for obtaining approvals", Musk wrote. "I understood from him that no other decision makers were needed and that they were eager to proceed". He has also asked for additional details on how the company would be taken private, including any required percentages and any regulatory requirements.
Musk closed out the post by stating: "I will now continue to talk with investors, and I have engaged advisors to investigate a range of potential structures and options".
What are the next steps?
"I made the announcement last Tuesday because I felt it was the right and fair thing to do so that all investors had the same information at the same time", Musk said.