Elon Musk Says Tesla Buy-Out Is Saudi Funded

Elon Musk Says Tesla Buy-Out Is Saudi Funded

Last week Elon Musk made the surprise announcement that he planned to take Tesla private. By this, he intended (with the help of investors) to buy enough of the company shared to force the compulsory purchase of the rest and remove Tesla from the stock market entirely. It was a bold announcement. One that no one was really expecting.

It has led to some criticism that the announcement was purely made to put stock market ‘short-sellers’ to task. These are, essentially, people who use the stock market predicting a loss in company value.

In a report via NBCNews though, Elon Musk has claimed that the buy-out is very real and the investors are Saudi based.

Saudi Investors To Buy-Out Tesla

Following a 5% purchase being made by an unnamed Saudi group, Elon Musk confirmed that he: “left the July 31 meeting with no question that a deal with the Saudi sovereign fund could be closed.”

As for his own position in the company, he has indicated that he would still retain his 20% share of the company. A buy-out would, however, open the doors for Elon Musk to take a backseat or graceful exit from the company. A company which many feel he might be hurting more than helping with his off-the-cuff social media activity.

Will The Buy-Out Happen?

Honestly, it’s really hard to say. It’s clearly going to take a significant amount of money. It’s even thought that this Saudi group might not be enough to solely buy-out all shared of the company. As such, it is believed that other potential buyers are being considered by Wall Street companies.

This might, however, all be a smoke screen. Current investors in Tesla have already threatened to sue Elon Musk over the Twitter post and as such, he might simply be trying to add some validity to the claim.

We’ll have to wait and see. It’s certainly interesting times though!

What do you think? – Let us know in the comments!