GE Nixed Tesla Investment

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On Sunday we picked up on a leaked Car and Driver magazine interview with Telsa CEO, Elon Musk. In it he says, “a bit of news that hasn’t come out yet [is] General Electric is investing in Tesla.”

Turns out the reason that news didn’t drop is because it’s not true. In the comments of that post, a GE rep wrote, “We have not invested in Tesla, although we are closely watching it and several other companies in this area.”

It looks like GE was going to invest in the company, but at the last second changed its mind. Engadget quoted Tesla saying that GE pulled its funds, and Tesla sent us the same email that said:

GE has not invested in Tesla.

When Car & Driver interviewed Elon Musk a couple months ago, GE had committed to invest in Tesla and had sent an e-mail confirming the investment. But GE backed out on the day it was supposed to wire funds to Tesla. The decision came after GE went into company-wide capital conservation mode.

In any case, GE’s investment allocation was taken up by venture capital firms Westly Group, Technology Partners and Draper Fisher Jurvetson, and Tesla closed the $40 million round without a problem earlier this year.

So we guess this is good news in the end, as the company has raised its round.

UPDATE: We talked to Tesla and Car and Driver. The interview was conducted in January. At that point Tesla was under the impression that it was going get funding from GE. A week after the interview, Tesla learned that it wasn’t getting funds from GE. Tesla forgot to follow up with Car and Driver to correct the issue. Car and Driver also forgot to follow up, as it’s not a business magazine and didn’t realise the importance of the news.

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