Last week Elon Musk decided to take Tesla private and since then shareholders have been guessing about Tesla’s move forward. Musk, succumbing to the pressure of investors, recently published a blog post where he explained that his plans have gained the support of Saudi sovereign investment fund. Other investors are also being considered.
The Saudi fund owns 5 percent of Tesla shares at the moment and is fully ready to support the company’s plans to go private. Meanwhile, Tesla’s board of directors are still waiting on CEO Elon Musk to explain the financial position of the company and its move forward.
Musk had proposed through Twitter a $72 billion deal. Investors could buy a share for $420, which is currently at $350. Not everyone has taken the news lightly as short-sale investors have filed two lawsuits against Tesla blaming the company of artificially increasing stock prices.
Two major meetings have taken place among the board of directors, first of which Musk didn’t attend. In the second, he briefed the board of his possible moves forward.
Elon Musk also said that the idea was first floated by the Saudi investment group in 2017. This time in a July 31st meeting with the investment head Musk confirmed he had secured the investment.