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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.
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.