Yahoo Finance Saudi Arabia eyes enlarged stake in Musk’s private Tesla
Saudi Arabia’s sovereign wealth fund is in talks to increase its investment in Tesla as part of Elon Musk’s buyout plan.
The Saudi Public Investment Fund, which has built up a stake of 5pc, is interested in expanding that if the electric carmaker abandons Wall Street, Bloomberg News reported.
It comes after Mr Musk publicised plans to take Tesla private for $420 (£329) a share, a deal that would value the company at $82bn, including debt.
For Saudi Arabia, an investment in Tesla could act as a hedge against the long-term decline of oil.
Mr Musk is seeking wealthy long-term backers to help Tesla escape the glare of the public markets and running battles with short-sellers.
He said that being public meant the company was “subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders”, and put it under pressure to make short-term decisions. The PIF and Tesla did not respond to requests for comment.
