Elon Musk says Saudis back Tesla buyout
Elon Musk outlined his plan to take Tesla private and said that he has discussed the funding of an agreement with Saudi Arabia.
The founder of the car manufacturer electric also indicated that he would need to raise far less than the $70bn it has been estimated that he would need.
In a blog post, Mr Musk said that he only wanted to buy the members that no longer wanted to own Tesla shares.
The announcement comes a few days after the investors filed a lawsuit claiming that he deceived the market.
Mr Musk has announced on Twitter that August 7, which was considering taking Tesla private, the addition of “funding”.
Since then it has been facing questions about where he would have obtained the financing for its proposed $420 a share offer.
Shares of Tesla rose slightly to $357 in morning trading in New York.
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They folded down from the highs near $380 have touched after his first tweet. Investors cited the Tesla are a few sellers, who bet on share prices falling and claim to have lost millions as a result of Mr Moss’s comments.
On Monday, the founder of Tesla, said that he had met with the Saudi sovereign wealth fund after it bought a 5% stake in the company.
He left the meeting of July 31, “with no question that a deal could be closed, it was only a matter of getting the process in motion”.
The fund was “eager to proceed” with the financing of a “going private transaction” after the meeting, Mr Musk said.
The Saudi fund had approached him “several times” since the beginning of last year about taking the company private, Mr. Musk said.
“Their first meeting with me, at the beginning of 2017, to express this interest because of the need to diversify from oil,” he said.
Mr Moss, who owns almost 20% of Tesla, had sent the tweet in order to “catch up” with the company’s largest investors who are interested in supporting a deal.
Since then, he said that he had kept in contact with the Saudi fund and its administrator had “expressed their support” to proceed with the agreement, subject to legal controls.
Mr Musk said that it would need $70bn for the purchase of all of the members, as it has the only purpose to offer $ 420 a share for those who do not want to remain investors if the company decided to go private.
“My best estimate now is that about two-thirds of the shares owned by all current investors would roll in the private to Tesla,” he said.
The middle floor is Mr. Moss, he would not have needed to borrow large amounts of money to pull out of the deal.
He said that the de-listing companies from the stock exchange to avoid the pressure to meet quarterly financial goals, and end to “negative propaganda” from a few sellers.