Elon Musk’s tweet regarding his company turning private has seen comments arriving from various quarters. Elon Musk is the CEO of Tesla Inc, the multinational corporation from the US and makers of Model S electric cars.
It is said that the Public Investment Fund from Saudi Arabia is already in talks towards becoming a big investor in Tesla. Sources further say that the Saudi Arabian fund has already built 5% stake in Tesla, the giant company in electric cars.
One month back, the Investment Fund had tried for a minority stake with Tesla, but they were not given an opportunity to do so. But the fund had bought shares of Tesla on a large scale, up to nearly $2 billion from the market. This made it own almost 5% stake in the company.
But currently, talks are going on between Tesla and the Investment Bank.
The tweet made by Musk on his plans to make Tesla private and quoting the shares at $420 per share was not expected by investors. Musk had made the formal statement on his company’s website only after tweeting the news on the website.
SoftBank from Japan had also shown interest in Tesla’s buyout plan, but later it vested its interests in other automakers like General Motors and other autonomous vehicle makers.
Saudi Arabia is seeking for expansion in sectors other than oil and its related products and Tesla is seen to be a good sector to branch out in.
Investment Fund from Saudi Arabia is out on big purchases. It is not only Tesla but previously in 2016, it had invested in Uber. It had invested about $3.5 billion in Uber. Similarly, the fund had also joined with Softbank by investing in tech funds to about $93 billion. Another sector it will be venturing into is space companies, with Virgin Groups in October with an investment of about $1 billion.