Wednesday 15 August 2018

Musk's Saudi Gambit Invites the Kind of Leverage He Doesn't Want - Bloomberg

Musk's Saudi Gambit Invites the Kind of Leverage He Doesn't Want - Bloomberg:

Elon Musk has painted an idyllic picture of a private Tesla Inc. operating away from investor scrutiny and short-seller attacks. But in casting Saudi Arabia’s sovereign wealth fund as a key player to allow him freer reign, he’s given them leverage to exert significant influence.

 The Tesla chief executive officer has said the Saudi Public Investment Fund’s interest alone justified his claim last week that he had the funding secured to buy out some investors. The outsize role Musk described the fund playing in going public with his proposal could even give the Saudi fund a stake on par with his. 



The Saudi PIF is unlikely to operate like famous activists Carl Icahn or Bill Ackman, who’ve built their reputations by taking on boards and management, but they do have an agenda to bring more technology to the kingdom. Acquiring a big stake may embolden the fund to urge Musk to share solar or battery tech and even rein in Musk’s boisterous public persona.

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