NYT Report Claims SpaceX Could Help Musk Take Tesla Private

According to a report published in the New York Times, the funding got taking Tesla private could be helped by Elon Musk’s rocket company, SpaceX.

Last week, markets and investors were very surprised after Musk tweeted about his contemplation of taking tesla private for $420 per share and his claiming that funding was “secured” for the deal. But since then, Musk has had to say that he is still looking out for funds.

On Monday, Musk said that talks were ongoing for a funding for the deal with Saudi Arabia’s sovereign wealth fund.

SpaceX would help bankroll the Tesla privatization is another possibility that is consideration according to the New York Times report. the report also contemplated SpaceX taking up a stake in the privatized Tesla.

Musk is the CEO and controlling shareholder of SpaceX.

There were no comments from Tesla and SpaceX.

The difficulties that Tesla and Musk has had to face in the last one year while the electric car maker attempted to address manufacturing deadlines and for the Model 3 sedan, recounted the billionaire businessman in the interview.

“This past year has been the most difficult and painful year of my career,” he said. “It was excruciating.”

While the company has been battling hard to meet up its production targets for its cars, the company apparently has again run into more trouble because of the tweet by Musk which includes scrutiny by the government and lawsuits.

And in order to take some pressure off Musk, the company is also trying to find a second executive, reported the New York Times.

In the interview, Musk said that there are no plans to leave the post of chairman and chief executive officer of tesla.

In the interview Musk said that the tweet about taking tesla private was written by him while he was driving for the airport in his Tesla Model S. No one had reviewed the tweet before he posted it, Musk told the New York Times.

About 20 per cent premium one the recent price of shares, which is around $419 a share, is intended to be paid by him, Musk said in the interview. He decided to round up to $420 – a number that has become code for marijuana in counterculture lore, the report said.

“It seemed like better karma at $420 than at $419,” he said in the interview. “But I was not on weed, to be clear. Weed is not helpful for productivity. There’s a reason for the word ‘stoned.’ You just sit there like a stone on weed,” he said.

The emotional intensity of running Tesla was described by Musk during the interview. Musk said that he works for 120 hours a week.

“There were times when I didn’t leave the factory for three or four days — days when I didn’t go outside,” he said during the interview. “This has really come at the expense of seeing my kids. And seeing friends.”

(Adapted from Reuters.com)

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Categories: Economy & Finance, Strategy, Sustainability, Uncategorized

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