Economy

Tesla Special Committee to Evaluate Possibility of Taking Company Private

Tesla Special Committee to Evaluate Possibility of Taking Company Private

Musk said last week that Saudi Arabia's sovereign wealth fund had approached him about taking Tesla private.

Musk is going full steam ahead and working with financial advisors Silver Lake and Goldman Sachs as well as receiving legal advice from law firms Wachtell, Lipton, Rosen & Katz and Munger, Tolles & Olson.

A link between Musk's tweet and the Saudi involvement was soon made as the CEO's announcement ended with the "funding secured" phrase.

Musk tweeted on August 7 that he had "funding secured" to buy Tesla shares at $420 per share.

Earlier, Musk wrote that in late July, he met Saudi Arabian sovereign fund representatives to discuss the electric carmaker's possible exit from the stock market. Musk wrote that he tweeted the plan August 7 after "it was clear to me that the right thing to do was announce my intentions publicly". Tesla is the most shorted stock in the U.S. Musk has not hidden his contempt of short sellers in the past.

Saudi Arabia's Public Investment Fund (PIF) is known for its technology investments, including the $45bn it has spent in SoftBank Group Corp's Vision Fund.

Musk said that since his Twitter post on the possibility of a deal the managing director of the Saudi fund had expressed support for proceeding, subject to financial and other due diligence.

More news: White House paranoia deepens after Omarosa tapes

PIF officials have said in the past that decisions at the sovereign wealth fund are made with care, emphasising corporate governance. The PIF board is headed by the Crown Prince Mohammed bin Salman.

"I continue to have discussions with the Saudi fund, and I also am having discussions with a number of other investors, which is something that I always planned to do since I would like for Tesla to continue to have a broad investor base", he said.

It remains unclear if his definition of "secured" matches those of a reasonable shareholder, who may believe the statement indicated Musk had a written agreement, they said.

Musk said he anticipates that most Tesla shareholders would remain invested in the company if it were to go private, and that reports of a $70 billion buyout are inflated. What's more, a deal would likely prompt a review but the Committee on Foreign Investments in the USA, noted the paper.

A Tesla electric auto supercharger station is seen in Los Angeles, California, U.S. August 2, 2018.

That's led to at least two class-action lawsuits alleging securities violations.


  • Indian rupee hits record low of 70 to the dollar

    Indian rupee hits record low of 70 to the dollar

    Turkey's Lira fell more than 25 percent last week and extended the drop to a fresh record low above 7.00 per dollar. Meanwhile, the benchmark BSE Sensex recovered 184.93 points, or 0.49%, to 37,829.83 points in early trade today.

    Turkey prepares action plan for banks and businesses to tackle economic woes

    In contrast, the Turkish economy grew by 7.4 percent a year ago - quicker than financial growth champions China and India. Also, a diplomatic spat with the U.S. is resulting in sharply higher tariffs on Turkish steel and aluminum.
    Barcelona president Josep Maria Bartomeu refuses to rule out Paul Pogba move

    Barcelona president Josep Maria Bartomeu refuses to rule out Paul Pogba move

    United are set to follow the modern trend of adding a buffer between manager and board amidst criticism of the club's recent transfer dealings.
  • Jury retires to consider verdict in Ben Stokes' assault trial

    Jury retires to consider verdict in Ben Stokes' assault trial

    The England all-rounder had been arrested and charged with affray following an incident outside a bar in Bristol last September. Ali denied that Mr O'Connor and Mr Barry were being "a bit of a nuisance" and he and Mr Hale were getting "irate" with them.
    Turkey Central Bank to provide all liquidity banks need

    Turkey Central Bank to provide all liquidity banks need

    Gold, along with other commodities that are priced in U.S. dollars, tends to retreat when the United States dollar rises. The United States is the biggest destination for Turkish steel exports with 11 percent of the Turkish export volume.

    Trump camp to sue Omarosa for breaking non-disclosure?

    Was Trump there? Nah, he was at his Palm Beach resort Mar-a-Lago doing whatever it is he does there (read: golf). She refused, and Kelly was forced to fire her, unnamed White House aides told Politico .
  • Jack Whitehall will play Disney's first openly gay character in 'Jungle Cruise'

    Jack Whitehall will play Disney's first openly gay character in 'Jungle Cruise'

    Still others pointed out that this is not the first time a "gay" character has been played by a straight actor in Disney. The film is based on the Disney theme park ride of the same name and also stars Dwayne Johnson and Emily Blunt.
    World stocks hit one-month low as Turkish rout spreads

    World stocks hit one-month low as Turkish rout spreads

    Investors have become increasingly anxious about Turkish President Recep Tayyip Erdoğan's stewardship of the country's economy. Indonesia's central bank was also intervening in foreign exchange markets on Monday to defend the rupiah.
    Netanyahu, Corbyn clash amid Munich wreath-laying dispute

    Netanyahu, Corbyn clash amid Munich wreath-laying dispute

    He also accused Mr Corbyn of comparing Israel to the Nazis - but a Labour statement reiterated a previous denial of that claim. The Labour leadership is resisting calls to adopt in the full worldwide definition and examples of anti-Semitism.
  • Vienna tops list of world's most liveable cities in 2018

    Vienna tops list of world's most liveable cities in 2018

    Below is a ranking of the top and bottom cities surveyed, accompanied by the liveability rating for every city. Calgary was also given flawless scores in most categories, except culture and environment, where it got a 90.
    What we learnt from Azealia Banks’ weekend at Elon Musk’s house

    What we learnt from Azealia Banks’ weekend at Elon Musk’s house

    She also posted that she believed that Grimes flew her to LA because Musk and Grimes wanted to have a threesome with her. The spokesperson referred questions about Tesla funding to the company, which did not respond to request for comment.
    How much has Lionel Messi won with Barcelona

    How much has Lionel Messi won with Barcelona

    The victor of the match that will be staged in Tangier, Morocco, will be decided over one leg for the first time . Sevilla faces Zalgiris on Thursday after winning their first match 1-0.