Tesla shares rise on report Saudi Arabia sovereign wealth fund has $2 billion stake
- Saudi Arabia’s sovereign wealth fund has acquired a significant position in Tesla shares, according to the Financial Times.
- The media outlet says the Saudi’s Public Investment Fund bought a 3 percent to 5 percent stake in the electric car maker, according to people with direct knowledge of the matter.
- The stake is worth $1.9 billion to $3.2 billion at the company’s current share price.
Tesla spikes after Saudi wealth fund builds $2 billion stake: Financial Times from CNBC.
Saudi Arabia’s sovereign wealth fund has acquired a significant position in Tesla shares, according to the Financial Times.
The media outlet said the Saudi’s Public Investment Fund bought a 3 percent to 5 percent stake in the electric car maker, according to people with direct knowledge of the matter.
The stake is worth $1.9 billion to $3.2 billion at the company’s current share price.
The Saudi fund approached CEO Elon Musk about buying newly issued shares, the report said, but Tesla declined. Instead the Public Investment Fund bought the shares in secondary markets.
Tesla weighs taking company private, but no decisions made yet
- Tesla shares surged more than 10 percent after being halted for more than an hour.
- Musk issued a string of tweets about possibly taking the company private at $420 a share.
- Later, the company issued a blog post that said a final decision had not yet been made.
- Tesla’s market value at $420 a share would be about $71 billion.
Tesla CEO Elon Musk stunned investors Tuesday with a string of tweets saying he is considering taking the company private, in what would be the largest deal of its kind.
“Am considering taking Tesla private at $420. Funding secured,” Musk said in a tweet shortly before 1 p.m. Musk discussed the plans further in a blog post later Tuesday.
From there Musk tweeted several times. In responses to questions on Twitter, Musk said he will ensure the prosperity of shareholders “in any scenario.” If Tesla went private, current investors could keep their stakes in Tesla through a special fund, or sell their shares at $420, he said.
Shares jumped after Musk’s first tweet, trading as high as $371.15 before giving back gains. Later the stock was halted for more than an hour. When it reopened shares surged more than 10 percent.
Tesla shares were already trading higher on a report of a new stake from the Saudi Arabia sovereign wealth fund.
