US-based electric car pioneer Tesla says it is in talks with Saudi Arabia with a view to the country’s Public Investment Fund (PIF) being the key financial backer for CEO Elon Musk’s plans to take the firm private. PIF has recently built up a 3-5% Tesla stake.
Musk says buyout plans would be worth $420 a share, well above the current price of $350 and implying a total value of $71bn. PIF’s assets are worth $250bn. Plans to inject a further $100bn via the flotation of 5% of Saudi Aramco are seemingly on hold; a recently-mooted alternative would see Aramco inject cash into PIF via the purchase of the latter’s 70% stake in Saudi petchems giant Sabic (MEES, 10 August). (CONTINUED - 119 WORDS)