Tesla’s privatization plans and their rationale, revealed by CEO Elon Musk on Aug. 13, confirmed that Saudi Arabia???s sovereign investment fund is among the potential investors that may provide the estimated tens of billions of dollars likely needed for the public company to change form.
Also, Musk acknowledged in his Aug. 7 tweet that the ???secured??? funding did not mean that financing had been finalized for taking his electric car company, Tesla Inc. (NASDAQ: TSLA), private, but rather that Saudi Arabia???s sovereign investment fund sought to participate and help finance such a move. The CEO blogged on Aug. 13 that he had informed the auto company???s board of directors of a positive July 31 meeting between himself and the head of the Saudi Arabian sovereign fund, in which they wanted to explore the possibility of privatization that could be in Tesla???s ???long-term interest.???
The board of directors agreed at its Aug. 2 meeting that Musk could reach out to the company???s largest shareholders to learn whether they had the ???ability and desire??? to remain investors if the company went private. When tweeting about Tesla’s privatization possibility from his personal twitter account, Musk indicated he was speaking for himself as a ???potential bidder??? and wanted to share the development with all investors in a public forum.
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