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Saudi Fund in Talks to Invest in Tesla Buyout Deal, Report Says (bloomberg.com)
Saudi Arabia's sovereign wealth fund is in talks that could see it becoming a significant investor in Tesla as part of Elon Musk's plan to take the electric car maker private, Bloomberg reported Sunday, citing a person with direct knowledge of the fund's plans. From the report: 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, the person said on condition of anonymity. Discussions began before the controversial Aug. 7 tweet by Musk, who is Tesla's co-founder and chief executive officer, saying he was weighing a plan to take the company private. The PIF sees its investment in Tesla as a strategic way for the world's biggest crude producer to hedge against oil, the person said. The Saudi fund hasn't made any firm decisions on whether to increase its stake, or by how much, but talks are ongoing, the person said. It wasn't immediately clear how much the fund would invest in Tesla.
Musk did have something concrete ? Shocking!
Yes, I'm left. You have a problem with that?
Musk is a poster boy for how inappropriate behavior has become mainstream, well perhaps just behind Trump. I'm sure he'll be very happy with the Saudi's, maybe even learn some new tricks.
Tesla makes cars that consume energy and batteries which store it, whereas Saudi Arabia produces energy. It still requires energy to charge Tesla's batteries, which on a mass scale means natural gas for power plants (unless we're going to blanket the country with solar cells and wind farms) - Saudi Arabia has the largest natural gas reserves in the world, thus is already hedged against oil.
So, the solution is to sell Tesla to the terrorists? Well done.
Soon to be, electric ISIS pick-ups coming to your country!
This great moron is a loser gambling financially and judicially his illegal objectives about Tesla.
For going private Tesla, it will need eat part of the company SpaceX for the Tesla's recovery. SpaceX partners will be "unhappy" about this chief's threat.
The saudi partners are very interested in oil-based cars than electrical cars. There are billions of oil-based cars on the world, and it makes "happy" for the saudi people.
However, this great moron has money to share his three companies: Tesla, SpaceX and HyperLoop. About money, there are ones more than others.
Saudi Arabia has the largest natural gas reserves in the world, thus is already hedged against oil.
They've also got something of an excess of insolation, which they could harness using solar thermal and/or PV. They are well-located to export that energy to something like half of the world, too...
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
I see you'd rather invest in Google translate than Tesla.
That's true, but economically exporting photovoltaic charges from solar cells across the oceans and around the world (in carriers such as Hydrogen) will require a lot of R&D before it's viable.
It was actually a way to convey information to a potential investor that protects him from SEC action. He had lined up terms with one player, but he doesn't 100% like the terms. He wants to have another player provide better terms, but if he revealed to the other player he had a particular price already matched, that would be enough for them to buy in and profit. By tweeting the price and that enough funding was lined up, it is made in a public way, so he can continue negotiating with the 2nd player ASAP. He didn't bother filing with the SEC before tweeting, because he didn't want to slow things down. He could have actually been negotiating with the 2nd player right as he tweeted, and use it as a public way to reveal information without even stopping the meeting.
Musk also had talk with Softbank last year.
But failed because
The talks touched on taking Tesla private, but failed to progress due to disagreements over ownership. Musk proposed a structure that would have given him disproportionate control over the company through stock with supervoting rights, one person said.
We shall see about the Saudis. They have different investing criteria than private investors.
Never the less, this announcement probably gets Musk out of any hot water with the SEC and that lawsuit from the short selling firms may end up as nothing.
Think about it... Saudi fund investing in Tesla. Oil wealth investing in disruptive technology that can potentially obviate the need for petroleum fuels. If this happens, they'll deep-six that company because it's a threat to their cash cow.
It's much simpler. Saudi Arabia needs a hedge. There's no better hedge against oil than an EV manufacturer.
Assuming ethanol comes from murdered children and the hydrogen from magic, hydrogen saves 132% more lives than ethanol.
This is the same news that have been circulating since the announcement over and over:
Elon is in talks with big Tesla investor[s].
Well, of course he's in talks with ALL big investors. Even if funding is secured to match all the valuation money - it's in Elon's best interest that all big investors keep their ownership instead of Elon having his 20% and the investor getting 80% of the company. This does not imply that funding is not secured!
A better hedge is becoming a solar panel supplier. Tesla is only one of many that uses solar electricity. One (or few) to many.
Clearly a lot of people want Musk and Tesla to fail and thought that the privatization messages that came out late last week was Musk losing it. I'm not a fanboy, but I must say there's a certain amount of amusement to be gained from seeing the posts and reactions of people who want him (and his businesses) to fail.
Hate Musk and his products all you want, but don't try to bet against him.
Mimetics Inc. Twitter
A year ago, Tesla had secured funding for a buyout deal from Softbank. But the deal negotiations fell apart over the level of control (Musk didn't want Softbank basically having veto authority over all company decisions).
Say what?!
If the funding was secured, then the negotiations would have been over and contracts signed. Saying funding or anything is secured (a done deal) in the middle of negotiations would be a lie; which Musk did NOT do.
And as far as board approval at Tesla, it's whatever Musk tells them to do. The board rubber stamps everything.
Tesla's board is not independent. It is all Musk's cronies. Musk also has 20% control of the company and along with Fidelity and other funds, no one can outvote Musk.
You can't hedge the production of one type of energy against the consumption of an alternate type of energy, so there are in fact much better hedges against producing oil than an electric car manufacturer.
Tesla, now brought to you buy racist anti-gay bankers ;)
Saudi Arabia wants to be solidly entrenched in the world when their oil/gas runs out. So they are diversifying hard./p.
Your ad here. Ask me how!
last gaspers trying to emulate btc? you go mr. musk,, j public unsupports the media bias.. the coin of the realm is kaput.. greed fear ego based corepirate nazis fleeing with the 'spoils'... never ending holycost may end abruptly...?
The Saudis have a lot of money and the general thought is they are eager to not only hedge, but to diversify.
Diversifying into a company that has the ambition to enable more renewable energy seems a reasonable complementary strategy. Whether Tesla shall be the company to best realize that remains to be seen. They seem to be more willing to do risky short term things than most of their competitors. Of course particularly on EV they have increasingly competent competition from the traditional automakers that have a lot of advantages like more widespread dealer and service networks, but some of those have been viable partnerships. For solar roof, they seem to be having some struggles, and it's still far cheaper just to do normal solar panels. I've no idea on their powerwall stuff.
XML is like violence. If it doesn't solve the problem, use more.
Then Big Oil and Coal wins.
We are already far behind other countries. This would set us back even further.
Clearly a lot of people want Musk and Tesla to fail and thought that the privatization messages that came out late last week was Musk losing it.
No, many of us are skeptical. Buyouts are normally announced by both parties after the contracts are signed.
Hate Musk and his products all you want, but don't try to bet against him.
All this "hate" doesn't exist. It's all in your head. It's just people being skeptical and bringing up the problems that they see with Tesla. It's cash negative, losing money, buried in massive debt and many of us are very skeptical of its viability. How is that hate?
Tesla is just a financial curiosity for me now. One way or another, it's going into stock market history. And it's a learning experience for us who like picking stocks.
I'm not a fanboy, ...
You sure sound like one. Calling a skeptic a hater is one sign.
You can't hedge the production of one type of energy against the consumption of an alternate type of energy, so there are in fact much better hedges against producing oil than an electric car manufacturer.
No, but you can capture and kill Tesla, take its patents off the board, throw the industry into uncertainty and recoup your investment on the subsequent rise in oil prices (even if it is relatively small). You can also play Munk’s do-senseless-but-spectacular-crap-to-see-your-name-in-the-news game.
This is the problem with rich people. They can afford to ge stupid.
https://www.reuters.com/articl... The Reuters article seems to be backed up better, but I don't put it past the Saudis to agree to talks to help them preserve the value of their recent open market stock purchase so they can to proceed to liquidate. Rei "forgot" to mention not only was SoftBank not interested last year in Tesla because they wanted Musk out, but they also said $300 a share was too expensive. From SoftBank, some of the dumbest money around. And this was when Tesla'a finances weren't nearly as precarious as they are today. Speaking of Tesla's finances, GreyBar just slapped a mechanics lien against Tesla, adding to the growing pile. They are a Fortune 500 electrical services company. First large vendor not getting paid. And lest you think high level talks always portend of something coming to fruition, remember Lehman? https://www.reuters.com/articl...
See subject: From other deals falling apart it to try BUY TESLA OUT (& control of it) it proves that HOPEFULLY Elon Musk isn't stupid giving up 51% controlling interest in stock & direction (decision making on his tech & financials) in TESLA.
* IF you want to beat America? BUY HER UP (prostitute for sale on a corner via the biggest crap table cheated gambling house ever made, the stock market).
APK
P.S.=> IF I could speak to Mr. Musk directly I'd say "DON'T DO IT" for the reasons above... apk
... possibly dirty money from somebody who is either against non-fuel cars or taking a long term hedge. And, currently, it would mean ruling out the Canada market if they have control or a significant interest in the post-purchase company. Canada's not a huge market, and there might be issues with battery-powered cars in (very) low temperatures but part of it is pretty green (thus, a Tesla target).
What's ironic about Musk's reckless tweet is that any buyout will now have to also include money to pay for potential lawsuit damages. Longs bought shares on Tuesday's announcement to see their gains disappear as doubts of Musk's truthfulness surfaced. Longs who were holding OTM calls at 420+ saw the value of their contracts drop as Musk effectively capped upside. Tesla is now liable for damages to both shorts and longs! Amazing, but as both sides can agree on, Tesla is a special case!
There's no reason for Saudi Arabia to export electricity across the ocean. They have direct land routes to the approximately 6.5 billion people who live in Asia, Europe and Africa. That said, it's still not realistically economical at the moment due to losses over such huge distances -- hardly more realistic than ideas of covering the sahara in solar panels. And it would never have anywhere near the margins of oil.
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Bloomberg is the only one reporting on this.
The thing is, Bloomberg is the news outlet that reports a lot of negative articles and opinion pieces on Tesla and on its cash burn.
Now, it's the only one reporting on a possible deal - so, far. Meaning, I'm even more skeptical of any deal.
I put Reuters ahead of Bloomberg on the reliability scale, btw.
You obviously are one of the people taking it in the "Shorts".
Just because you can't gamble on Elon's level, you hate him; I understand that. That's normal these days.
But he won't be losing a case brought by short sellers; they will be laughed out of court.
Just watch. :)
Truth isn't Truth - Guliani
'nuff said.
Truth isn't Truth - Guliani
it's just as likely he's gotten by on survival bias and a Steve Jobs grade reality distortion field. In other words, Charisma and guile. That's not inteligence, that's a skill (specifically, knowing how to manipulate people).
Donald Trump is the President of the United States, but given a raft of blunders that I wouldn't expect from a third grader (at one point he said he met with the "President of the Virgin Islands"... they're a territory. He's their President...) I wouldn't consider him Smarter than me. Just somebody who got a really good hand in life. Musk, with his Engineer dad and model mom, seems to have much the same.
This isn't to say Musk is stupid. Far from it (he at least finished an undergrad degree in CS). Just that he's not a genius. He's just a bit on the bright side.
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
Just a couple weeks ago Tesla longs and Musk supporters were blaming Big Oil conspiracies for all news critical of Tesla. Now they see the biggest of Big Oil as their savior. All for a what? A potential 15% upside to the stock they own? What a laughable crock of BS.
The shorters drive him bonkers and he is frankly obsessed with it.
Not nearly as obsessed as the shorters are with destroying Tesla.
He announced the "$420" buyout price to drive the stock up and hurt the shorters.
Even after this story and the previous $2b in Saudi fund money buying into Tesla, you still can't believe a buyout is in the works... sad.
My prediction is a buyout will happen around $50, with some surges up to $1k beforehand once shorts realize the deal is serious and have to unwind positions.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
There's a reason they're called petrochemicals and not just fossil fuels. We'll be needing them for years, just not for energy production.
Pssst! Got a tip from Slashdot. Invest in nuclear. It's the hottest up and coming solution to energy needs.
i think the saudis will buy teslas like hot-cakes ... after charging the battery from a oil-fired electrical outlet which is basically a hose stuck into their back-lawn :]
afterall 2.7 sec to 100 km/h is nothing to sneeze at.
Curiously absent from this thread is any outrage from the likes of Amimojo, PopeRatzo and Serviscope that Elon is selling out to a mysoginistic, anti-LGBTQ empire. Try to be consistent guys.
Aluminium-graphene batteries (that was fabricating China) defeat Li-ion batteries. The graphene is obtained from coal.
To see The Battery Revolution in China!
Inmho, Tesla is dead with their obsolete and underpowered Li-ion batteries.
To see Aluminium-ion battery
And having an engine that won't stall during a haboob would be nice, too!
Wasn't this obvious from the start that the Sauidis would try to kill antil-oil motor companies from ever flourishing ?? World full of suckers.
I don't threaten vs. a NOBODY
Shut your fucking pie hole you lying sack of shit.
You threaten people all the time and when called on it you hide in the fucking corner and piss yourself.
So come on pussycake post your fucking address
Obviously negotiations are starting, no deal is finalized. $420 a share is the opening offer by the seller. It's capped. And Musk hurt his offer by potentially adding billions in liability costs to it. If you think shares are worth more than $420 you're saying PT Barnum doesn't value his own company enough. That's crazy. If I was a stock holder I'd dump it given how limited the upside is and how terrible the company's finances are.
Comment removed based on user account deletion
See subject. If you spoke to Musk directly, I'd expect his security team to be immediately shit canned.
PS=> Fuck off, you're deranged. Nobody should listen to you.
The Saudis flexed their $ in latest protest against Some Canadian criticism. Tesla will have various self interests varying depending on investors but the Saudis sent a signal recently on meddling in their domestic affairs.
Your information on Saudis is outdated. Bin Salman changed the state's policy to "prepare for post-oil economy" when he came to power.
Tesla fits the bill.
If you have fewer than 500 shareholders, you can remain a private company.
Remember back to the earlier days of Facebook and it was reported here that Goldman Sachs had started a fund for its clients to be able to invest in Facebook while it was still a private company.
According to Musk, SpaceX has a similar fund for its employees to be able to hold stock in the company and is looking at replicating this for Tesla.
Any deal won't require a complete buyout of all outstanding shares at $420 and the tens of billions of dollars being touted, but rather it requires getting agreement from a sufficient number of the smallest shareholders to either sell or roll up their holdings into an aggregate fund so that the total number of shareholders is reduced to the private-public threshold.
These saudis only want to destroy tesla, so they can sell more oil... can you connect the dots or not ? :)
Yep. Tesla fits the bill of many of the Saudi's "investments" - overpriced, underperforming, but shiny and noisy.
An EV manufacturer is a fucking awful hedge. A good hedge is the battery components or resources to manufacturer the cars. Betting on a single making is extremely high risk, especially for the long term, a hedge is ensuring that no matter who wins the EV wars then they come out ahead.
That cat is out of the bag now, killing Tesla will just see someone else rise to take their place. when you hedge at this level you don't want to be the manufacturer, you want to be the supplier all manufacturers need to buy from, be that the components/resources for the batteries, the power supply or even the cars raw materials. manufacturers are high risk ventures that are prone to be replaced by the competitors in relatively short time periods so any bet even on the leader is not a good long term hedge.
Yes, is to having great loser Tesla, tovarisch!
Saudi invest almost universally long term. They also don't enforce non-public format of their investment heavily, which is why you won't find any definitive statements on wealth of Saudis in "reputable" mainstream media.
Best analyst assessments I've seen have been insider data, and they suggest that Bezos, Gates and Slim are small fish in comparison to wealthiest Saudis.
Khyber STALKING me by AC again & ALWAYS SAYS "Lying Sack of Shit" (not to me always either ala e.g.) https://slashdot.org/comments.... https://slashdot.org/comments.... https://slashdot.org/comments....
YOU MADE A HUGE MISTAKE THREATENING ME HERE Khyber https://slashdot.org/comments.... & ANYONE I merely addressed in TURN when DIRECTED @ me by UNIDENTIFIABLE anonymous you use STALKING ME? Isn't threatening ANYONE real, period.
That is, UNLESS your name is "Anonymous Coward" on your birth certificate stupid & it isn't...
APK
P.S.=> Khyber CAUGHT RED-HANDED "defending himself" by AC here too https://slashdot.org/comments.... ? Please, lol
I am APK the great "LORD of HOSTS", a.k.a. AlecStaar or Alexander Peter Kowalski.
See subject & APK Hosts File Engine 2.0++ 64-bit for Linux h t t p : / / I . a m . a . f u c k i n g / a s s h o l e . r e t a r d . z i p (remove spaces between characters & download).
I am the godlike creator of various GUI front-ends for other people's configuration files.
One person stalks me as I shitpost and I dusted them on another site but in reality I am widely hated.
When people state the truth about me I get really mad and accuse them of projecting which is something I do all the time.
Don't call me out on anything as I will state that you are a webmaster and that I cut off your revenue stream.
You must be conspiring with the Jews and Soros if you disagree with me.
Mistaking mockery and parody for impersonation is how I think people flatter me because I can't possibly understand that they detest me.
See me lash out at one person for 2 weeks straight and claim everyone who mocks my retarded ass is actually them.
Bask in my greatness as I post my advertisements in discussions where they don't belong, by the way this is every discussion I post in.
I demand your age sex and location so that I can threaten to show up and kick your ass and will call you a pussycake but am actually too scared to actually do anything but be a keyboard warrior.
Watch as I claim I am world class and a winner but in reality I am a fucking loser.
Witness my descent into madness
APK
See my subject & answer that: & Why do you also STALK me by UNIDENTIFIABLE anonymous posts as well? AFRAID to stand behind your lies??
* THIS I have to hear, lol - it WILL truly be a classic I'm sure!
(CAT GOT YOUR TONGUE SUDDENLY? You wouldn't answer LAST TIME I ASKED IT + YOU DOWNMOD "HID" IT (the sure sign of YOUR total SELF-defeat) https://it.slashdot.org/commen... )
Plus, since you say I'm the "Lord of Hosts"? My "portrait" https://365songsblog.files.wor... (lol) so SATAN, get thee behind me!
APK
P.S.=> Grow up you obsessed loon who not only IMPERSONATES me but also STALKS me by UNIDENTIFIABLE anonymous posts constantly... apk
"Lol I waited around all weekend while grimes coddled her boyfriend for being too stupid to know not to go on twitter while on acid" https://www.rhymeswithsnitch.c...
>nformation is that they are evil fucking cunts
probably. they're just as evil as trump. and faux news.
Hey AC, care to share some links where Trump has imprisoned peaceful rights activists or given a free pass to a group of people throwing a gay guy off a roof? I get that you need to hide your stupidity behind anonymity in the Age of Information but something so easily disprovable is getting sad from Trump haters. Stop grasping at straws and update your tired beliefs.