Tesla Inc. TSLA CEO Elon Musk It was convinced of support from Saudi backers to take the automaker private in 2018, but they later withdrew their commitments.
What happened: Musk testified during his trial in San Francisco federal court that he met with representatives of a Saudi sovereign wealth fund. public investment fundat Tesla’s factory in Fremont, Calif., on July 31, 2018, Reuters reported.
“The PIF clearly wanted to keep Tesla private,” Musk said in his testimony, according to Reuters.
Afterwards, the president of the fund Yasir Al Rumayyanreturned to its commitment to keep Tesla private.
“When we met, I was very upset because he was clearly in favor of keeping Tesla private.
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Important reasons: In testimony, Musk admitted that he did not discuss the purchase price with PIF representatives, according to Reuters.
Tesla investors have accused Musk of committing fraud when he tweeted that he would take the company private at $420 a share in 2018.
According to Reuters, a nine-person jury will decide whether Musk has artificially boosted Tesla’s stock price by discussing the acquisition, and if so, by how much.
Musk said the $420 amount was chosen because “it was a 20% premium to the stock price.” He reportedly said the price was no joke.
Price action: Tesla shares closed 7.7% higher at $143.75 in regular trading on Monday and rose 0.7% in after-hours trading, according to Benzinga Pro data.
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photograph Courtesy: Thomas Hawk on Flickr