Musk says Saudi sovereign fund supports taking Tesla private

Tesla Chief Executive Elon Musk said on Monday he was still in talks with potential investors to support Tesla’s exclusion from the US stock market, including Saudi Arabia’s sovereign wealth fund, although he acknowledged that it was not over yet. to secure funding for a similar operation.

In a blog post, Musk said the Saudi fund had been pushing to take the electric carmaker private in talks that began almost two years ago and also supported the transaction outlined last week by the chief executive of Tesla.

Musk’s recent post gives more evidnce to the shocking announcement made by the billionaire on August 7 when he said he was studying to exclude Tesla from the stock market, stating that he had already secured financing.

However, Tesla shares were down 0.6 percent on Monday on the Nasdaq, suggesting investors are still not entirely convinced.

“I’m still in talks with the Saudi fund and also with several investors, something I’ve always planned to do, since I would like Tesla to continue to have a broad investor base,” Musk wrote.

He added that since his tweets about the possibility of this operation, the director of the Saudi fund had expressed his support, pending the financial aspects and an in-depth analysis of it.

The Public Investment Fund (PIF) of Saudi Arabia is known for its investments in the technology sector, including the 45 billion dollars it spent on Vision Fund, of the SoftBank group.

The fund was not immediately available to respond to the request for comments. Tesla refused to make statements beyond the publication on the Musk blog.

“They first met with me in early 2017 to show interest because of a pressing need to diversify beyond oil,” Musk wrote.

“We then had several more meetings in the following year to reiterate this interest and try to move forward with a private transaction. Obviously, the Saudi sovereign fund has sufficient capital to execute a transaction like this. ”

Musk said that after the talks on an operation like this last week with both external directors and the full board of directors, it was agreed that the next step would be to consult the main shareholders.

Darrell Tachuck

Darrell Tachuck is the senior editor for Herald Keepers. Darrell has been working as a journalist for nearly a decade having published pieces in many print and digital publications including the Times of San Diego and the Huffing Post. Darrell is based in San Diego and covers issues affecting his city and state. When he’s not busy in the newsroom, Darrell enjoys spending time surfing.

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