Saudi’s PIF has no interest to fund Tesla buyout deal
Saudi Arabia’s Public Investment Fund (PIF) has shown no interest so far in financing Tesla CEO Elon Musk’s proposed $72-billion deal to take the US electric car maker private, despite acquiring a minority stake in the company this year, two sources familiar with the matter said.
The 47-year-old stunned markets when he said on Twitter he was considering a take-private deal for Tesla, an auto manufacturing pioneer that developed the world’s first luxury all-electric sedan car. Musk also said he had secured funding for the proposal, without providing details.
Investors and analysts viewed PIF as a natural financing partner. Beyond amassing a stake of just below 5 per cent in Tesla, the sovereign wealth fund has poured tens of billions of dollars into technology investments, including $45 billion in SoftBank Group’s Vision Fund over five years.
However, a source who is familiar with PIF’s strategy said it was not currently getting involved in any funding process for Tesla’s take-private deal. A second source close to the situation also said PIF was not taking part in any such plan at this stage. This source said that the Saudi fund would not make an investment of this kind without seeking guidance
first from SoftBank. According to separate sources who spoke to Reuterslast week, SoftBank is currently not pursuing an investment in Tesla given its investment earlier this year in rival GM Cruise.
Pressure is mounting on Musk to produce details of his financing plan.