- Elon Musk said via Twitter on Monday evening that he was working on a proposal with Goldman Sachs and Silver Lake as financial advisers to take Tesla private.
- In a statement earlier Monday, Musk also shared more details about who might fund such a deal.
- Musk said in the statement that a meeting with the managing director of Saudi Arabia’s sovereign wealth fund prompted his tweet last week about wanting to take Tesla private. But Musk said he was also talking to other investors because he wanted to “continue to have a broad investor base.”
Elon Musk said via Twitter on Monday evening that he was working with Goldman Sachs and Silver Lake as financial advisers on a proposal to take Tesla private.
Musk also said he was working with the law firms Wachtell, Lipton, Rosen & Katz and Munger, Tolles & Olson as legal advisers.
Goldman Sachs declined to comment. Silver Lake and both law firms did not immediately respond to a request for comment.
Goldman Sachs has long been a key adviser to Tesla, but the apparent involvement of Silver Lake, best known as a private-equity firm specializing in tech investments, is striking. Reuters, citing a source, reported after the tweet that Silver Lake was not discussing participating as an investor in the deal and “was offering its assistance to Musk without compensation and had not been hired as a financial adviser in an official capacity.”
It started with a tweet
Last Tuesday, Musk tweeted that he was “considering taking Tesla private at $US420,” adding, “Funding secured.”
Details about such a deal, however, have been sparse.
In a statement published on the company’s website Monday, Musk said a July 31 meeting with the managing director of Saudi Arabia’s sovereign wealth fund had given him confidence the fund would back a deal to take Tesla private.
“During the meeting, the Managing Director of the fund expressed regret that I had not moved forward previously on a going private transaction with them, and he strongly expressed his support for funding a going private transaction for Tesla at this time,” Musk said in his statement. “I understood from him that no other decision makers were needed and that they were eager to proceed.
“I left the July 31st meeting with no question that a deal with the Saudi sovereign fund could be closed, and that it was just a matter of getting the process moving. This is why I referred to ‘funding secured’ in the August 7th announcement.”
Musk said in his Monday statement that he was still in talks with the Saudi fund but was also having discussions with other investors because he wanted to “continue to have a broad investor base.”
“I will now continue to talk with investors, and I have engaged advisors to investigate a range of potential structures and options,” he said. “Among other things, this will allow me to obtain a more precise understanding of how many of Tesla’s existing public shareholders would remain shareholders if we became private.”
Musk said that full details regarding the source of funding would be provided before anyone would be asked to decide on going private but that it was “premature” to share such information on Monday.
Read more about Tesla possibly going private:
- Elon Musk reveals what he meant by his ‘funding secured’ tweet
- Elon Musk reveals new details about taking Tesla private, says he thought tweeting announcement was ‘the right and fair thing to do’
- Elon Musk’s tweet about taking Tesla private might be ethically questionable, but it isn’t morally wrong
- A couple of reasons Elon Musk could actually pull off his wild plan to take Tesla private
- Elon Musk’s ‘funding secured’ tweet could cost Tesla millions, former SEC chairman says
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