Elon Musk recently took Tesla’s shareholders and the market by surprise when he tweeted that he’s considering taking Tesla private at $420 per share. He also mentioned in the tweet that funding for this endeavor has been secured. However, a new report claims that Musk is still working to bring in sufficient financial support for this transaction which is expected to cost at least $50 billion.
Tesla, under its CEO Elon Musk, is reportedly looking for finding from a wide range of investors so as to prevent a concentration of ownership. Bloomberg reports that discussions are in early stages still and continue to revolve around some core questions about how the deal and the holdings of the backers will be structured.
The scribe also reached out to individuals close to 16 tech and financial institutions and they said that they were not aware of any pre-arranged funding for this transactions. Tesla has not commented on this report. If it’s accurate, the report highlights that Musk’s initial description of the plan which mentioned that the funding had been secured wasn’t exactly true.
Whether or not that will result in civil and criminal penalties for Musk remains to be seen as some reports suggest that the tweet sent out by Musk have left him vulnerable to such charges.