The Saudi Arabian fund wants to invest heavily in Tesla as it makes its way to private life

The Saudi Arabian fund wants to invest heavily in Tesla as it makes its way to private life

Tesla Dubai
Tesla opened its first showroom in the Middle East in Dubai last year.
AP Photo / Kamran Jebreili


While Tesla CEO Elon Musk teased last week about making the company private, some applicants have already wooed the electric car maker months ago.

Saudi Arabia's public investment fund, the country's sovereign wealth fund, is in talks with Tesla about becoming a major investor in the privatization process, Bloomberg said on Sunday in sources about the fund's plans.

The Saudi mutual fund contacted Musk months ago to discuss acquiring a minority stake, but was turned down as the company was not planning to issue new shares at the time, Bloomberg said. In return, the fund bought nearly $ 2 billion worth of Tesla shares through an investment bank and built a close to 5% stake in the company.

The fund has not yet made any concrete plans with Tesla to increase its stake, Bloomberg said, but the talks are continuing, and continued investment in the company is seen as a strategic step towards diversifying the Saudi economy away from oil.

Last week, Musk baffled investors when he tweeted that he wanted to keep Tesla private for $ 420 a share before buying one formal statement on the company website. The company had a market capitalization of more than $ 60 billion last week.

In his statement, Musk said the company's private takeover was "the best way forward," adding that shareholder reconciliation must take place before a final decision is made. He later Tweeted that investor support has already been confirmed,

Tesla was reportedly courted by Japan's SoftBank in April of last year, although sources told Bloomberg on Monday that the conglomerate is not planning on joining Tesla's buyout as it is already interested in other automakers and autonomous vehicle programs such as General has engines.

A Tesla investment would expand the long-growing list of high-profile purchases from the Saudi fund. The company invested $ 3.5 billion in Uber in June 2016, merged with Softbank for a $ 93 billion tech fund in May, and invested approximately $ 1 billion in Virgin Groups space company Virgin Galactic in October ,

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