Tesla seeks wide investor pool to back its take-private plan

Tesla, Elon Musk sued and official enquiries made over Twitter claims

Saudi Arabia's Public Investment Fund (PIF) has shown no interest so far in financing Tesla Inc CEO Elon Musk's proposed $72 billion deal to take the US electric vehicle maker private, despite acquiring a minority stake in the company this year, two sources familiar with the matter said.

Musk's email to Tesla employees posted on Tesla's website on the day of the tweet explained the rationale for the going-private plan, but Musk has yet to prove that the "funding secured" part of his tweet was true.

In a blog post, Musk said the wealth fund has approached him "multiple times" over the past two years to discuss funding for privatization, most recently on July 31. Musk and his advisers are seeking a wide pool of investors to back a potential take-private of the automaker to avoid concentrating ownership among a few new large holders, according to people familiar with the matter.

He also is in talks with other investors because he wants Tesla to continue to have a "broad investor base", he wrote. The fund itself has not publicly commented on the possibility of a deal.

"They first met with me at the beginning of 2017 to express this interest because of the important need to diversify away from oil", Musk wrote.

Saudi Arabia's Public Investment Fund (PIF) is known for its technology investments, including the $45 billion it has spent in SoftBank Group Corp's (9984.T) Vision Fund.

Musk added that he has continued talks with the managing director of the Saudi fund who wishes to move forward with the process.

The SEC has asked Tesla if Musk had facts to back up his claim on Twitter that funding is "secured", people familiar with the regulator's inquiry told the Wall Street Journal last week.

Several analysts have said going-private would make sense for Tesla but expressed skepticism about the company's ability to raise the required funds. Once those discussions are complete, Musk will bring a proposal to Tesla's board. Tesla's shares briefly turned negative on the news and traded up 0.8 percent at 4:05 p.m.in NY.

As mentioned earlier, 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. "So the potential investor must be patient and strategic-looking".

Mr Kalman Isaacs, one of the investors who filed the suit on Friday in a San Francisco court, claimed Mr Musk's tweets were "designed to completely decimate short-sellers". Among other things, this will allow me to obtain a more precise understanding of how many of Tesla's existing public shareholders would remain shareholders if we became private.

Related news:

Hot News

isis-killer-beheading-video-story-top Aretha Franklin "Gravely Ill" In Michigan
Aug 13, 2018 - 16:10
Her statement came after she cancelled a string of concerts citing ill health. "This will be my previous year ". Throughout her lengthy career, Franklin accumulated 18 Grammy awards, including one for Lifetime Achievement.

isis-killer-beheading-video-story-top Space Force: Trump 2020 asks supporters to vote on logo
Aug 12, 2018 - 11:48
But, earlier this week, Mr Mattis said he is in "complete alignment" with Mr Trump's concerns about United States space assets. There is no independent military branch focused on space, but there is a sizable space command within the air force.

isis-killer-beheading-video-story-top Bill Schuette and Gretchen Whitmer Win Michigan Gubernatorial Primary Races
Aug 12, 2018 - 11:39
Corbin Trent, a spokesman for Ocasio-Cortez's campaign, declined to respond to Shapiro. Slotkin, who has raised more money than Rep.

isis-killer-beheading-video-story-top Angry Saudi Arabia Pulling 7000 Students from Canada
Aug 12, 2018 - 06:23
Kocijancic said the commission wants to understand the allegations against the activists and to ensure they receive a fair trial. Saudi Arabia operates at least two routes to the country, both of which depart from Toronto.

isis-killer-beheading-video-story-top Spieth momentarily loses cool, shoots 66 at PGA Championship
Aug 12, 2018 - 04:31
I am definitely exhausted ", Woods said. "It's soft, it's gettable, and you can't just go out there and make a bunch of pars". To get his body ready for Sunday, Woods is likely slated for more ice baths and deep-tissue massages. "I'm exhausted .

isis-killer-beheading-video-story-top Progress On Mendocino Complex Fire As Firefight Enters 3rd Week
Aug 12, 2018 - 02:59
CalFire noted on its web site that "heavy timber and fuel loading have challenged firefighting efforts" to contain the Carr Fire . Trabuco and Holy Jim canyons were also under mandatory evacuation orders, as well as the Blue Jay and El Cariso campgrounds.

isis-killer-beheading-video-story-top Watch NASA’s historic Sun probe mission launch: here’s how
Aug 12, 2018 - 00:01
The heat shield is built to withstand radiation equivalent to up to about 500 times the Sun's radiation on Earth. Alex Young live from the Kennedy Space Center about the historic mission and what researchers hope to learn.

isis-killer-beheading-video-story-top Virginia governor declares emergency ahead of Charlottesville anniversary
Aug 11, 2018 - 23:54
The National Park Service said Wednesday it issued a permit for a rally in Lafayette Park by Unite the Right . Charlottesville had been in a months-long battle over what to do with a statue of Gen.

isis-killer-beheading-video-story-top Google Acknowledges Epic’s ‘Fortnite’ Isn’t On The Play Store
Aug 11, 2018 - 23:43
Below that, the Play Store continues with the normal search results, which includes the competing PUBG mobile battle royale game. If you're running Android 9 Pie on a compatible phone, you can download Digital Wellbeing now from the Google Play Store .

isis-killer-beheading-video-story-top Turkish lira slumps to new record low as Donald Trump doubles tariffs
Aug 11, 2018 - 23:12
The currency drop will also increase the cost of living for people in Turkey by making imports more expensive. Turkey's President Recep Tayyip Erdogan addresses his supporters in Bayburt, Turkey, Friday, Aug. 10, 2018.

isis-killer-beheading-video-story-top Almost man Fowler grabs early PGA Championship lead
Aug 11, 2018 - 22:33
"Since I've been playing well, and particularly since I've been playing well in the majors, I tend to look at them more". The championship favourite is Dustin Johnson , while the three previous major winners this year will all play together.

isis-killer-beheading-video-story-top Liverpool's Loris Karius thanks fans for warm reception in friendly
Aug 10, 2018 - 17:31
City finished with 100 points last term - a whopping 25 clear of Klopp's side - and there would need to be a significant drop off from the champions for Liverpool to finish ahead of them this term.

isis-killer-beheading-video-story-top England v India: James Anderson strikes twice before rain returns at Lord's
Aug 10, 2018 - 16:57
The second test of the five-match series between India and England kicked off on Friday at Lord's cricket stadium in London . Play was scheduled to start at 11:00 BST, but steady rain kept the covers on the pitch and prevented the toss at 10:30.

isis-killer-beheading-video-story-top IDF Pounds Hamas After 150+ Terror Rockets Fired at Israel
Aug 10, 2018 - 16:50
The Gaza Health Ministry said that a Hamas fighter and the two civilians were killed in separate incidents. Twenty-four of the slain protesters were minors, the ministry has said.

isis-killer-beheading-video-story-top Mauricio Pochettino says Brexit influenced Tottenham's lack of summer transfers
Aug 10, 2018 - 15:28
For the first time since the summer transfer window was introduced 15 years ago, one team spent nothing: Tottenham. Building a stadium that costs almost £1billion - that's is the truth, don't believe when they say £400million.