Saudi Arabia May Back Tesla’s $420-per-Share Buyout

Tesla sales and service center is shown in Costa Mesa California

Tesla CEO Elon Musk confirmed reports on Monday morning that the Saudi Arabian sovereign wealth fund purchased a stake in the company worth almost 5 percent and held discussions with Musk about taking the company private.

While Tesla CEO Elon Musk teased last week about taking the company private, several suitors may have already been courting the electric auto giant months ago.

In a blog post, Mr Musk said that he only wanted to buy out shareholders who no longer wanted to own Tesla shares. The talks between the Saudi fund and Tesla reportedly began before Musk's tweet on August 7.

Musk has not offered evidence that he has lined up the necessary funding to take Tesla private, and the complaints did not offer proof to the contrary.

Musk's tweet announcing the deal - and a proclamation of "Funding secured" - shocked investors, and he has yet to back up his claim that he has financing for the transaction.

"Doing our best with the limited information we have, we come to the conviction that Tesla is unlikely to go private, and anticipate the board will reject Elon Musk's offer or approach", New Street's Pierre Ferragu, who has a $530 price target for the stock, said in a report Monday.

Arsenal 0-2 Manchester City: Pep eases past Emery
Their defence will be even stronger this season too, especially after the World Cup campaign's Kyle Walker and John Stones had. For Arsenal , their biggest concern will be at left-back with two specialist players in that position out for the fixture.

Musk's tweet stunned investors, with many raising questions about his claim that funding for the venture had been secured.

For Saudi Arabia, an investment in Tesla could act as a hedge against the long-term decline of oil.

Tesla did not respond to a request for comment on the proposed class-action complaints filed in the federal court in San Francisco. But Tesla shares were up only minimally in early trading, suggesting investors are yet to be convinced.

Tesla was reportedly courted by Japan's SoftBank in April of previous year, though sources told Bloomberg on Monday that the conglomerate isn't planning to participate in deals for Tesla's buyout as it has already vested interest in other auto makers and autonomous vehicle programmes, like General Motors. The Saudi fund hasn't made any firm decisions on whether to increase its stake, or by how much, but talks are ongoing, sources told Bloomberg.

The Public Investment Fund, which has built up a stake just shy of 5 percent in Tesla in recent months, is exploring how it can be involved in the potential deal, said the people, who asked not to be identified talking about the matter. They are canvassing investors including large asset managers, the people said. He later tweeted that investor support was already confirmed.

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