Elon Musk, the eccentric billionaire and founder of multiple technology businesses with futuristic goals, is also a very controversial figure. He’s no doubt one of the most high profile entrepreneur in the world who gets in trouble very often because of his tweets and bold actions.
A few months in past he deleted Facebook pages of Tesla and SpaceX after getting into an argument with a Twitter user. A few weeks in past, he created controversy by calling a diver involved in Thai Cave Rescue Mission – a pedophile – for which he later apologized.
On 7th August, Musk dropped another bomb on Twitter by announcing that he might take his car company Tesla private in a record transaction of $72 billion valuing the company at $420 per share. He also added that funding to take Tesla private had been secured.
Many industry analysts and journalists started to criticize Elon Musk, when he didn’t offer enough evidence that he has actually lined up the necessary funding to take Tesla private.
A bunch of them argued that this can be a blow up for short-sellers – investors who take overpriced shares and sell them, then they wait for the price to get lower and buy the shares with lower prices making a big profit along the way. Elon Musk has always been very vocal in his tweets to criticize these short-sellers.
On Friday, Elon Musk was sued by two of such investors who blamed him for fraud and engineered scheme to mislead short–sellers by power play. These lawsuits were filed after three days of Elon Musk’s tweet. The plaintiffs Kalman Isaacs and William Chamberlain accused Musk for his conduct stating that it caused to inflate Tesla’s stock price artificially violating the federal securities laws.
The stock price of the Tesla raised to 13 percent above from the stock price of the previous day right after the tweet. The price has been settled again to two-thirds of that gain.
US Securities and Exchange Commission had started to begun investigation on Elon Musk and Tesla’s activities about this matter. But Elon Musk remained silent on the matter, up until now.
In a blog post published on this Monday, Elon Musk cleared up inquiries about Tesla going private by saying that his claim last week was based upon ongoing conversations with Saudis.
He said that Saudi Arabian sovereign wealth fund has been approaching him multiple times about taking Tesla private for almost last two years. After buying 5 percent of Tesla stock through the public market, the Saudi fund reached out to him to ask for another meeting on 31st July after which the Elon found it likely that a deal with Saudi sovereign fund could be closed, Elon Musk said.
“Before anyone is asked to decide on going private, full details of the plan will be provided, including the proposed nature and source of the funding to be used. However, it would be premature to do so now.”
He also added that:
“I continue to have discussion with the Saudi fund, and I also am having discussions with a number of other investors. … It is appropriate to complete those discussions before presenting a detailed proposal to an independent board committee.”
The Saudi sovereign fund hasn’t made any comment on it but according to a Wall Street Journal report, it’s considering to raise its holdings in Tesla.