Elon Musk Is Reportedly Still Seeking Funding to Take Tesla Private

He could face penalties for fraud if his “funding secured” statement is deemed false.

By //Automotive

This week, Elon Musk revealed his plans to make Tesla private and removed all shares from public markets at the estimated cost of $50 billion USD. Musk claimed that funding for taking Tesla private has already been secured but according to a Bloomberg report, the company is still in the process of looking for funding from a broad pool of investors. This is to allegedly avoid a concentration of ownership in the brand.

Musk initially boasted that funding for the plan is “secured,” but if the description is no accurate, he could face penalties for securities fraud. His stock rose 10 percent, or $1.4 Billion USD, after he posted the announcement on Twitter. The Securities and Exchange Commission has already looked into whether Musk’s announcement was deceptive. However, at the moment there is no proof that a formal action has been been placed.

Musk revealed in a blog post on Tuesday why he decided to take the company private. He says going public makes the company vulnerable to short-term demands as well as bad-faith investments. “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,” Musk writes. After Tuesday’s post, Musk continues to share that “investor support is confirmed.” “Only reason why this is not certain is that it’s contingent on a shareholder vote,” he tweeted.

Read more about the situation via Bloomberg. In other news, Apple’s hires a former Tesla engineer for its self-driving car project.

Read Full Article
TeslaElon Musk

You may also like

Tesla's Model 3 Production Is Reportedly Delayed Due to Flawed Parts
Automotive

Tesla's Model 3 Production Is Reportedly Delayed Due to Flawed Parts

With up to 40% of parts needing work.
2,730 Hypes 3 Comments
Elon Musk Strongly Considering Taking Tesla Private
Tech

Elon Musk Strongly Considering Taking Tesla Private

Is this just more Twitter ranting?
4,744 Hypes 16 Comments
Tesla's California Factory Is Under Investigation
Automotive

Tesla's California Factory Is Under Investigation

Reportedly due to “underreporting work-related injuries and illnesses.”
4,845 Hypes 10 Comments
This Is How Tesla Was Able to Push 5,000 Model 3s out by the End of June
Automotive

This Is How Tesla Was Able to Push 5,000 Model 3s out by the End of June

Was the accomplishment worth the insanity?
8,885 Hypes 18 Comments
Elon Musk to Open Orders for Dual-Motor Model 3 Next Week
Automotive

Elon Musk to Open Orders for Dual-Motor Model 3 Next Week

Can Tesla emerge from the production woes?
6,296 Hypes 1 Comments
Tesla to Ramp-Up Production of Model 3 to 6,000 Cars a Week
Automotive

Tesla to Ramp-Up Production of Model 3 to 6,000 Cars a Week

Less chatter, more get at ‘er.
1,593 Hypes 6 Comments


What to Read Next

Pornhub Gives Kanye West Free Lifetime Premium Membership
Entertainment

Pornhub Gives Kanye West Free Lifetime Premium Membership

After his appearance on ‘Jimmy Kimmel Live!’

Nike Football Enlists Neymar, Ronaldinho & More for New Short Film, 'Awaken the Phantom'
Sports

Nike Football Enlists Neymar, Ronaldinho & More for New Short Film, 'Awaken the Phantom'

Created to promote the PhantomVSN.

Ken Malik Highlights the Perils of Street Life for New "Young N*gga" Video
Music

Ken Malik Highlights the Perils of Street Life for New "Young N*gga" Video

‘Deep End’ coming soon.


Astrid Andersen Spotlights Family-Inspired SS19 Collection at Copenhagen Fashion Week
Fashion

Astrid Andersen Spotlights Family-Inspired SS19 Collection at Copenhagen Fashion Week

Shot at the Verner Panton suite.

Best New Tracks: Nicki Minaj, OMB Peezy, Bas, Childish Major, Tirzah & More
Music 

Best New Tracks: Nicki Minaj, OMB Peezy, Bas, Childish Major, Tirzah & More

New bangers for your weekend.

City Girls Deliver Their Own Take on Drake's "In My Feelings"
Music

City Girls Deliver Their Own Take on Drake's "In My Feelings"

Quality Control’s rising new duo rework the viral hit.

More ▾