“Funding secured,” explained
reported, and sources cast doubt on the idea that the Saudis would increase their current stake in Tesla.when he tweeted that he was “considering” taking Tesla private “at $420” and that he has secured the funding to do so. The stock exchange briefly halted trading on Tesla shares as investors waited for more information. In a subsequent email to employees, Musk indicated that the tweet was serious, not just a weed joke.
Another critical point to emphasize is that before anyone is asked to decide on going private, full details of the plan will be provided, including the proposed nature and source of the funding to be used. However, it would be premature to do so now. I continue to have discussions with the Saudi fund, and I also am having discussions with a number of other investors, which is something that I always planned to do since I would like for Tesla to continue to have a broad investor base.
He claimed that the deal would be financed with equity rather than debt, arguing that Tesla was saddled with enough debt at the moment. He estimated that “approximately two-thirds of shares owned by all current investors would roll over into a private Tesla.” And he dismissed reports that a buyout could cost as much as $70 billion, stating that they “dramatically overstate the actual capital raise needed.” But he did not clarify what the actual number might be.
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