Tesla CEO Elon Musk has teased the idea of taking the electric-car company private and said he had “funding secured” for the ambitious move.
On Monday, Musk said in a statement that he interpreted earlier overtures from Saudi Arabia’s Public Investment Fund (PIF) about taking Tesla private as evidence that the group was “eager to proceed.
But reports from The New York Times, The Wall Street Journal, and the Financial Times indicate the fund may not be ready or able to close on such a deal at this time.
In the last week, Tesla CEO Elon Musk has made a series of bold statements — first surprising stakeholders by announcing a proposal to take the company private, then asserting that he had secured funding for such a deal, and finally claiming that Saudi Arabia’s Public Investment Fund (PIF) was on board, and “eager to proceed.”
But multiple sources cited by The New York Times, The Wall Street Journal and the Financial Times have cast doubt on Musk’s claims, alleging that Saudi Arabia has not taken the necessary steps to close on such a deal.
Three sources familiar with the sovereign wealth fund’s workings told The New York Times that the PIF has not prepared a term sheet, nor hired a financial advisor to figure out the logistics of such an ambitious move.
And the fund may not even be able to finance such a large scale move.
Two sources familiar with the PIF’s finances told The Wall Street Journal that they doubt any discussions between Musk and the PIF have gotten very far, as the fund is already struggling to finance its existing commitments.
Saudi Arabia’s Crown Prince has vowed to turn the PIF into “one of the world’s largest sovereign …read more
Source:: Business Insider