Elon Musk in talks with Saudi fund to take Tesla private

People look at cars at a Tesla showroom in New York City. Tesla CEO Elon Musk reportedly under scrutiny by federal regulators for earlier statements says Saudi Arabia's sovereign wealth fund is looking to diversify away from oil with a bigger inves

Tesla (TSLA.O) Chief Executive Elon Musk said on Monday he was still in talks with potential backers of a possible buyout of the company, including Saudi Arabia's sovereign wealth fund, but had not completed securing the funding.

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.

Despite tweeting on Tuesday that funding had been secured, Musk's newest blog post appears to contradict that claim.

Musk has also said he would be looking to keep his ownership of Tesla at around 20 percent in a buyout deal, and that a special goal vehicle, like the one that exists at his aerospace company SpaceX, would allow Tesla shareholders to remain invested if they so choose.

I left the July 31st meeting with no question that a deal with the Saudi sovereign fund could be closed, and that it was just a matter of getting the process moving.

Recently, after the Saudi fund bought nearly 5% of Tesla stock through the public markets, they reached out to ask for another meeting. If shareholders also approve, then each shareholder would have to decide whether to take $420 per share in cash-or to accept shares in the new, private Tesla instead.

More news: Actor Steven Seagal Appointed Russian Ministry’s As ‘Special Representative’

Reuters reported on August 11 that the PIF has shown no interest so far in financing Musk's proposed deal, while CNBC said on August 9 that Musk previously talked with the Saudi fund about a take-private deal, citing one person familiar with the matter.

The U.S. Securities and Exchange Commission has contacted Tesla to ask about Musk's assertion on Twitter that funding for his proposed deal was "secured", the Wall Street Journal reported on Wednesday. Once those discussions are complete, Musk will bring a proposal to Tesla's board.

Musk's failure to promptly file a formal disclosure has led to lawsuits from investors, accusing Tesla of fraudulently planning to squeeze short-sellers.

The transaction would be structured with equity so as not to burden Tesla with crushing debt, Musk added. Tesla's shares briefly turned negative on the news and traded up 0.8 percent at 4:05 p.m.in NY.

Musk says that means reports suggesting Tesla would need more than $70 billion to go private "dramatically overstate the actual capital raise needed". People close to at least 16 financial institutions and technology firms, who spoke on the condition of anonymity, have said they weren't aware of financing having been locked in before Musk's tweet. 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:

  • 20,000 under evacuation orders as Holy Fire grows in southern California

    20,000 under evacuation orders as Holy Fire grows in southern California

    Zinke, a former Republican congressman from Montana, is making his second trip to California to survey fire damage this summer. Ron Lugton, who works at Fall River Valley Golf & Country Club, said the fire is about 7 miles from his work on Highway 299.

    Academy Awards To Introduce New Category For "Outstanding Achievement In Popular Film"

    Starting with the 92nd Academy Awards in 2020, a new Oscar will be awarded for achievement in popular film . The 2018 awards show, which clocked in at nearly four hours, was the least-watched Oscars to date.

    Star witness Rick Gates to testify for third day in Manafort trial

    Gates also said he may have submitted personal expenses for reimbursement by Trump's inaugural committee, which he helped operate. Manafort's political work included advising Viktor Yanukovich on policy after he won the Ukrainian presidency, Gates said.
  • Canada seeks UAE mediation to defuse Saudi Arabia row

    Canada seeks UAE mediation to defuse Saudi Arabia row

    Maritime universities are keeping a very close eye on a sudden and serious diplomatic spat between Canada and Saudi Arabia. In response, the Saudi government has expelled Canada's ambassador from the country and frozen all new trade with Canada.
    GOP Rep. Christopher Collins of NY  charged with insider trading

    GOP Rep. Christopher Collins of NY charged with insider trading

    The case involved Innate Immunotherapeutics, an Australian biotech company. for which Collins served as a board member. The third-term congressman, who represents parts of Buffalo and Rochester, was due to appear in court later today.

    United States tariffs on China: Trump administration adds $16 billion

    At that time, Beijing threatened a 25 percent tariff on US crude imports, although it did not issue a specific date for the move. China's exports soared in July, showing little impact from U.S. tariffs, as Washington finalises more duties on Chinese imports.
  • Arsenal fans lose patience with Emery

    Arsenal fans lose patience with Emery

    As for Manchester City , they began brightly, faded either side of half-time, but came good in the final quarter to cruise to victory.
    Gautam Gambhir believes Lord’s Test can decide India’s fate in the series

    Gautam Gambhir believes Lord’s Test can decide India’s fate in the series

    Joe Root has confirmed that the 20-year-old debutant Ollie Pope will bat at No 4 in the second Test against India at Lord's today. Chris Woakes is expected to replace all-rounder Ben Stokes, who is standing trial in Bristol on a charge of affray.
    Karunanidhi’s death: Two foreigners join DMK cadre to shout slogans

    Karunanidhi’s death: Two foreigners join DMK cadre to shout slogans

    The transition from Annadurai to Karunanidhi is a rallying point not just for the DMK, but also for the state's politics. On Sunday, President Ramnath Kovind visited the former Chief Minister at the hospital and wished him speedy recovery.
  • Jose Mourinho: 'Manchester United left in a hard  position'

    Jose Mourinho: 'Manchester United left in a hard position'

    Real Madrid was already pursuing the Belgium goalkeeper before striking the €35-million ($52.45-million) fee with Chelsea . The early summer transfer deadline in the Premier League has seen a drop in spending for the first time since 2010.
    José Mourinho does not expect any Manchester United deadline-day signings

    José Mourinho does not expect any Manchester United deadline-day signings

    Any hope with which Manchester United supporters woke up on transfer deadline day has quickly been quashed by Jose Mourinho . He was also asked a follow-up question to clarify that there would be no incomings or outgoings throughout the day.
    Dead fetus found on airplane at LaGuardia Airport today

    Dead fetus found on airplane at LaGuardia Airport today

    A dead fetus was found on-board a plane at LaGuardia Airport in New York City on Tuesday. The plane was parked inside a hangar at the airport when crews made the discovery.


Most liked

The Mystery of Omarosa Manigault | Unexamined Premises
Tweeting on Monday, Mr Trump said his former Apprentice co-star had only started to attack him after she lost her job. President Donald Trump at the White House in Washington, U.S., February 16, 2017.

Tiger Woods admits he even surprised himself with major finish
The PGA was the last event to secure one of the top eight spots in the Ryder Cup standings and an automatic berth to the team. In the end, though, it was Koepka who held off the entire field and walked away with his second major title of the year.

US ‘Queen of Soul’ Aretha Franklin gravely ill, family friend says
Back in March the musician was forced to cancel some concerts, including a show in New Orleans, under " doctor's orders ". HuffPost UK has contacted a representative for Aretha for comment, and is awaiting a response.

This Indian politician to attend Imran Khan’s swearing-in ceremony
But a terrorist attack on India's Pathankot Air Force station in January 2016 scuttled plans for a revival of peace talks. The card is also essential for casting vote in the elections of Speaker, deputy speaker and the Prime Minister.

Zimbabwe election: MDC's Chamisa mounts legal challenge against result
The party must prove that any irregularities were grave enough to change the outcome of the vote. "We have a good case and cause". The MDC reported that its foreign lawyers had initially been denied entry into the Constitutional Court on work permit grounds.

Indian Navy put on alert as heavy rains lash Kerala
Meanwhile, Kochi Airport in a statement said flight operations are continuing uninterrupted and there has been no cancellations. Around 70 people are stranded in a resort in Munnar after the roads to the resort were blocked due to a landslide.

DOOM Eternal Lets You Take Over Demons and Invade People’s Campaigns
The lengthy gameplay demo was part of a keynote delivered at Quakecon, the annual showcase for all things id (and Bethesda ). Of course, the footage was packed with a variety of terrifying new demon types, including a teased boss encounter.

Trump's new tariffs on Turkey are actually benefiting Russian Federation
Erdogan also warned that Turkey could start looking for new allies if Washington damaged its relations with Ankara. Lindsay Graham of SC , said Trump's decision was retaliation against Turkey for not releasing Brunson.

Saudi Airstrike on Yemen School Bus Kills at Least 50, Mostly Children
The group's head of delegation in Yemen, Johannes Bruwer, tweeted "scores killed, even more injured, most under the age of 10". The Red Cross Yemen branch noted that under global humanitarian law, civilians should be protected during times of war.

Tottenham's Mauricio Pochettino happy with squad despite no signings
It's about if you really need them or not and then if you can get your target or not. They need to give their best. "I am not anxious , I am not sad, I am so happy".

Elon Musk isn't kidding, Tesla board confirms TSLA could go private
Musk owns an nearly 20 per cent stake in Tesla, meaning he'd still need roughly $70 billion in financing to take Tesla private . Tesla stock, which has been on the rise for days, skyrocketed after the tweet and ended Tuesday up 11%.

Saudi Arabia: 'There is nothing to mediate' in dispute with Canada
They further ended diplomatic ties, froze all new trade and investment and cancelled flights via their national carrier to Toronto.

Here's How The Bachelorette Is Handling Garrett's Social Media Scandal
Blake, ever the gentleman, told Becca she had nothing to say sorry for and that he wanted her to be happy. She told him, "You have been the most solid, constant relationship and one that I could turn to anytime".

Matteo Kovacic set to sign on loan from Real Madrid
After a dream tournament, it was expected that the former Tottenham player would return to Real Madrid's midfield. He'll be happy with the proposal he receives here.

Viral Video Shows Brooklyn Nail Salon Workers Hitting Woman With A Broom
Police later charged Huiyue Zheng , 32 of Brooklyn, with assault, menacing, criminal possession of a weapon and harrassment. Prosecutors are now reviewing additional evidence and may later alter those charges, the station reported.