On August 7th, Elon Musk announced via his personal Twitter that he was considering taking Tesla (NASDAQ:TSLA) private.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
The CEO has been facing a considerable amount of scrutiny from Tesla stock and shareholders after the company’s delay in production of its highly sought out Model 3’s.
Musk explained a little bit further about his consideration for taking his company private by saying:
Def no forced sales. Hope all shareholders remain. Will be way smoother & less disruptive as a private company. Ends negative propaganda from shorts.
— Elon Musk (@elonmusk) August 7, 2018
Tesla debuted its all-electric “affordable” car back in 2016 and thousands of individuals put refundable deposits down on these cars. Production was slowed down considerably as the company realized it couldn’t make the cars as quickly as normal car manufacturers.
The model 3’s have slowly been dripped out to consumers but not fast enough for some. Tesla is still facing major backlash for its slow production.
Saudi Fund Talks Tesla Buyout
Bloomberg reported this morning the electric car maker’s board will be meeting with its advisors this week to assess a proposal from Saudi Arabia’s sovereign wealth fund.
A source with knowledge of the fund told Bloomberg Sunday, that the Saudi Kingdom’s Public Investment Fund is working to be a part of any sort of investment pool that emerges to take Tesla private. The fund recently built a stake that is just shy of five percent.
If Tesla goes private, the transactions would be around $82 billion and Tesla will more than likely need to tap other sources of cash aside from the Saudi investment fund. Musk is hoping to avoid having to have large stakeholders in the company and would prefer to gather the funds from a larger group.
More news will continue to surface after Tesla’s board meets with its advisors.
>> Elon Musk announces he is taking Tesla private
TSLA Stock Movement
According to Yahoo Finance, TSLA stock is currently trading at $350.81 a share, down -$4.80 (-1.35%).
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