Saudi wealth fund PIF has shown no interest in bankrolling Tesla buyout

Tesla's board might not know where Elon's 'secure' funding is coming from

Tesla's board might not know where Elon's 'secure' funding is coming from

After Musk made his initial announcement via Twitter, claiming he may have a deal worth $72 billion, valuing the company at $420 a share, Tesla shares rose 11 percent to almost $380 (£298), But soon after, shares dropped back down. Elon could wind up in trouble if he had no factual basis for making the claim "funding secured".

Tesla's board has not received a detailed financing plan from Chairma/CEO Musk, and is seeking more information, Reuters reported last Thursday.

Short-sellers racked up paper losses of $1.3 billion on Tuesday after Tesla shares rallied 11 percent.

Tesla did not respond to a request for comment on the proposed class-action complaint filed in the federal court in San Francisco.

He said the question is whether or not Musk's statement about securing funding is true.

Whether or not that will result in civil and criminal penalties for Musk remains to be seen as some reports suggest that the tweet sent out by Musk have left him vulnerable to such charges.

Musk could be punished if the agency finds he tweeted about a buyout not because he had a deal in place, but because he wanted to punish short-sellers - who bet against a company's stock - knowing his statement would be likely to increase the price of Tesla's shares.

Tesla borrowed at hefty interest rates previous year, the person said, an additional cost burden for a company that had only $2.2 billion in cash flow at the end of June.

Tesla has been targeted by short sellers - the hedge fund managers Jim Chanos and David Einhorn in particular - who are betting on the company's failure and, according to S3 partners, have lost more than $4.4 billion since January as Tesla's share price rose. They said he had "addressed the funding for this to occur", without providing details.

Here are some of the key events in Tesla Inc's turbulent history as a public company. The company is based in nearby Palo Alto, California.

But Musk has been open about his disdain for Tesla short-sellers.

The Twitter comments could potentially affect Musk's legal situation.

July 28, 2017 - Musk hands over the first Model 3s to employee buyers, announcing over half a million advance reservations for the new electric sedan starting at $35,000. There is no evidence posted by either Elon or Tesla related to the secured finance.

Musk could soon be under investigation by the SEC if he can't prove there actually is a reasonable $420 offer on the table.

He could also seek funding from sovereign wealth funds such as Saudi Arabia's, which has just taken a stake in Tesla estimated at between three percent and five percent.

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