Elon Musk is working with Goldman Sachs, Silver Lake to take Tesla Private

Tesla Inc. chief executive officer Elon Musk announced on Monday he is working with Silver Lake Partners and Goldman Sachs Group Inc. on the Tesla privatization deal that would need about $70 billion in funding.

“I’m excited to work with Silver Lake and Goldman Sachs as financial advisors, plus Wachtell, Lipton, Rosen & Katz and Munger, Tolles & Olson as legal advisors, on the proposal to take Tesla private,” Musk wrote in a tweet.

Earlier during the day, Musk wrote in a blog post that  “Going back almost two years, the Saudi Arabian sovereign wealth fund has approached me multiple times about taking Tesla private,” as he attempted to clarify his tweet last week that he already had “funding secured.”

Tesla representatives did not immediately respond Monday night when asked if they could confirm that the automaker is working with high-profile financial advisors and lawyers on the deal.

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Tesla CEO Elon Musk

The latest tweet comes a week after Musk tweeted that he was considering taking Tesla private if its stock were to hit $420. In an email to employees, Musk explained that he wanted to go private to because “as the most shorted stock in the history of the stock market, being public means that there are large numbers of people who have the incentive to attack the company.”

Tesla’s stock rose by 10 percent at the news when the Saudi Arabian government’s stake in the automaker was revealed.

Shares remained below $420 and dwindled in the following week. Investors have also accused Elon Musk of manipulating Tesla’s stock price by deliberately tweeting misinformation to distract short-sellers.

Tesla and its chief executive officer Elon Musk now face a class action lawsuit, claiming the billionaire violated federal securities law through tweets last week. According to a class action complaint filed in federal court in San Francisco by plaintiff Kalman Issacs, Tesla and Musk “embarked on a scheme and course of conduct to artificially manipulate the price of Tesla stock to completely decimate the Company’s short-sellers,” beginning with Musk’s August 7 tweet.

The lawsuit also claims that Elon Musk falsely stated he had secured the funding needed to take Tesla private

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

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