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

Enlarge  Musk

Enlarge Musk

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.

Recommended News

  • Draper identifies Utah firefighter killed battling huge blaze in California

    Draper identifies Utah firefighter killed battling huge blaze in California

    Together, the Ranch and River fires have scorched 344,890 acres. "Sorry if we weren't supposed to", read the note from Cal Fire. The road into Yosemite Valley was reopened on Tuesday for the first time since July 25, along with two highways into the park.
    Dez Bryant tweets he will visit Cleveland Browns

    Dez Bryant tweets he will visit Cleveland Browns

    Dorsey said he wants to bring in a group of receivers next week to help fortify a position where the Browns keep taking hits. Bryant is on the invite list, but the 29-year-old pass-catcher initially refused to make contact with the organization.
    Paul Pogba named Manchester United captain against Leicester

    Paul Pogba named Manchester United captain against Leicester

    Whatever the reason, the Frenchman took his chance to show that his best performances are not limited to Russian Federation . Mark Ogden, senior writer at ESPN , says that Manchester United and their fans should "brace themselves for a bumpy ride".
  • Afghan forces search for Taliban fighters after major attack

    Afghan forces search for Taliban fighters after major attack

    Martin O'Donnell, a spokesman for US forces in Afghanistan , said American forces and USA attack helicopters flew in overnight. Militants launched a night assault on the provincial capital, taking control of several parts of the city.
    Charlottesville preps for anniversary of deadly rally

    Charlottesville preps for anniversary of deadly rally

    Last year, 32-year-old Heather Heyer was killed when she was struck by a auto that had plowed into a crowd of counter-protesters. Marchers in this weekend's Unite the Right 2 white nationalist rally may have a harder time getting a ride or a room.
    Everton sign Barcelona defender Yerry Mina, Andre Gomes and Bernard

    Everton sign Barcelona defender Yerry Mina, Andre Gomes and Bernard

    Everton signed Yerry Mina for 30.25 million euros, André Gomes on a one-season loan deal, and Bernard on a free transfer. He has played 14 times for Brazil , scoring once, with his last worldwide appearance coming at the 2014 World Cup.
  • Eat Free at McDonald’s for Life With the Mcgold Card

    Eat Free at McDonald’s for Life With the Mcgold Card

    Nevertheless, entering the contest takes a minimal amount of effort and it could earn you a whole lot of McDonald's . Though meant to generate attention, the promotion actually could be a marketing McCoup for the Golden Arches.
    Alisson: Salah success inspiring Liverpool's new goalkeeper

    Alisson: Salah success inspiring Liverpool's new goalkeeper

    That's how it is, they know that and we know that and we have to be ready week in, week out for all the different challenges. Alex Rogers spoke to West Ham News about the Premier League opener against the Hammers at Anfield today.
    Brett Kavanaugh's Confirmation Hearings Will Start in September

    Brett Kavanaugh's Confirmation Hearings Will Start in September

    Burck vetted the initial documents from the Bush Library, the documents were sent only to the Senate Judiciary Committee members. Democrats now argue that Republicans are now trying to hurry a confirmation process shortly before the 2018 midterm elections.
  • Dennis Shields Dead - Bethenny Frankel's Ex Boyfriend Dead of Apparent Overdose

    Dennis Shields Dead - Bethenny Frankel's Ex Boyfriend Dead of Apparent Overdose

    Frankel opened up about it earlier this year on " Steve Harvey ", describing a shift back toward friendship. But Shields, 51, reportedly lost consciousness before the Narcan began to work, and could not be revived.
    This weekend, watch for the Perseid Meteor Shower

    This weekend, watch for the Perseid Meteor Shower

    EST Sunday, meaning that night and into the morning hours of August 13, promise to produce the best show for North America. Will you be watching the meteor shower? Head outside after 11 p.m., when the Perseus constellation is higher in the sky.
    Trump 2020 to sell 'Space Force' merch

    Trump 2020 to sell 'Space Force' merch

    This might require legislative support because Congress sets a limit on the number of assistant secretaries of defense. Then Kimmel introduced a new conspiracy theory: "I must say, I respect Trump for taking this joke as far as he has".

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.