Tesla board says it will assess plan to go private

Tesla looking to go private with backing of Saudi fund

Musk in talks with Saudi fund, others on Tesla buyout

"This is why I referred to "funding secured" in the August 7th announcement".

Negotiations are still ongoing with the Saudi sovereign wealth fund and with several other investors.

Musk said Monday he had held talks with a Saudi sovereign fund on a buyout that would take Tesla off the Nasdaq exchange - an extraordinary move for what is now the United States' most valuable automaker.

"Recently, after the Saudi fund bought nearly 5% of Tesla stock through the public markets, they reached out to ask for another meeting", Musk wrote in the update. Tesla shares fell 1.2 per cent after opening sharply higher.

The SEC is reportedly looking into Musk's tweets about taking the company private, if Musk tweeted that he had "funding secured" for the process without actually having the money to back it up, it could be argued that the CEO was attempting to inflate Tesla stock prices with the tweet which could spell disaster for Musk. The statement makes it clear that nothing Musk has tweeted so far is a done deal.

Additionally, Musk and Tesla are being sued by investors who claim the plan to go private was part of a "fraudulent scheme" to punish short-sellers, or investors who borrow stock in a company with the hope shares will fall.

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PIF officials have said in the past that decisions at the sovereign wealth fund are made with care, emphasising corporate governance.

That tweet may have created a sticky situation for Musk as it appears the funding may not be locked up just yet.

Oh, dear. Azealia Banks, the rapper/walking controversy, hit Instagram late last night to lament an unfortunate weekend allegedly spent at the Los Angeles home of SpaceX founder Elon Musk.

Wall Street has voiced doubts about Musk's ability to pull off what could be the largest-ever go-private transaction, valued at as much as $72 billion.

The committee has the authority to evaluate and negotiate a potential deal, or any alternatives proposed by Mr. Musk, on the board's behalf, Tesla said.

"Despite Elon Musk's frustration with being a public company, I think there are more advantages to remaining public", said CFRA analyst Efraim Levy, citing cheaper access to capital and media exposure due to interest in a public company. Discussing full details on the plan, including the source and nature of the funding, would be "premature" now, he said. What's more, a deal would likely prompt a review but the Committee on Foreign Investments in the US, noted the paper. The multi-agency oversight operation could also determine whether the investment gave the Saudi's access to critical technology.

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