Elon Musk spoke about the details of the privatization of Tesla from Saudi Arabia

Elon Musk spoke about the details of the privatization of Tesla from Saudi Arabia

August 14, 2018 0 By autotimesnews

Last week, many foreign publications reported that Tesla will be privatized, and some of the shares will go directly to Elon Musk. The CEO of the company decided to dispel all the myths and told who had laid eyes on his offspring.

As reported by the Automotive News, Elon Musk broke the silence and even before the end of the sales negotiations, Tesla said that he had negotiated with representatives of the Saudi Arabian Sovereign Wealth Fund about the sale of shares. According to him, the proposal was submitted to the shareholders ‘council for consideration at the beginning of last year, but only recently negotiations have acquired serious character when investors’ words were backed up and they bought back about 5% of the company’s shares.

According to Musk, on July 31 he held a meeting with the representative of the fund, during which he expressed regret that the deal to sell all the shares is still not concluded, although there were no barriers on this score by the authorities. However, the outcome of the meeting, the head of Tesla was still pleased, as the Saudi side expressed its firm intention to continue negotiations.

As for the details of the deal, it is reported that investors are going to buy back shares only from those owners who will not want to keep a stake in the company after it leaves the exchange, and this is less than two-thirds of the shareholders of the total. In this regard, investors will not have to spend all of $ 70 billion to complete this transaction.

As Musk broke the silence before the end of all formalities, on August 11, some shareholders filed a lawsuit against him, who stated that his message had affected the stock price of the company on the stock exchange.

It is expected that investors will bring in the company “live” money, and the operation will not be limited to the repayment of borrowed funds, which would have already increased the impressive amount of the company’s debt obligations.