Tesla (TSLA.O) Chief Executive Elon Musk said on Monday he was still in talks with potential backers of a possible buyout of the company, including Saudi Arabia's sovereign wealth fund, but had not completed securing the funding.
Following Musk's bold announcement last week that he would take the company private at $420 per share, Tesla's stock initially shot up 11 percent.
Musk says he left a meeting with wealth fund officials July 31 with no question that the deal could be closed.
"During the meeting, the Managing Director of the fund expressed regret that I had not moved forward previously on a going private transaction with them, and he strongly expressed his support for funding a going private transaction for Tesla at this time", Musk said. "I understood from him that no other decision makers were needed and that they were eager to proceed", Musk wrote in the blog.
Gautam Gambhir believes Lord’s Test can decide India’s fate in the series
England lead the current five-match series 1-0 after a 31-run victory in the first Test at Edgbaston last week. Bowling conditions should be favourable today, but there might only be an hour or two of play.
Recently, after the Saudi fund bought nearly 5% of Tesla stock through the public markets, they reached out to ask for another meeting. Musk and SoftBank Group's Masayoshi Son held talks past year that touched on taking Tesla private, two people with knowledge of the talks have said. Musk said he has continued to communicate with the sovereign fund's managing director since last week, and that the managing director has "expressed support for proceeding subject to financial and other due diligence".
Musk's August 7 tweets helped push Tesla's stock price more than 13 percent above the prior day's close. Once those discussions are complete, Musk will bring a proposal to Tesla's board.
He added that most capital for the deal would come from equity and it would not be "wise" to burden the company with added debt.
According to Reuters, the separate lawsuits by Kalman Isaacs and William Chamberlain accuse Tesla and Musk of issuing statements that are in violation of securities law, artificially boosting the stock price, and putting a squeeze on short sellers. Musk has said he still expects to own about 20 percent of Tesla after any transaction, and that he hopes all shareholders will remain owners of a private company.
Oscars Adds Popular Movie Category, Announces Other Big Changes
This experiment failed, and it felt as though the only way to "fix" it was to just go back to five Best Picture nominations. We have heard from many of you about improvements needed to keep the Oscars and our Academy relevant in a changing world.
Musk wrote that at the July 31 meeting, the fund's managing director "strongly expressed his support" for taking the electric auto and solar panel maker private.
What are the next steps? "So the potential investor must be patient and strategic-looking". If the board approves the deal, then it would go to a vote of shareholders.
Trump going ahead with taxes on $16B in Chinese imports
All in all, China's trade surplus with the U.S. shrank to $28.08 billion in July against $28.97 billion in the previous month. Washington has long criticized China's trade surplus with the United States and has demanded Beijing cut it.