The Tesla shorters should start running for cover.
Tesla shares (NASDAQ:TSLA) were boosted in Tuesday trading amidst reports that Saudi’s Public Investment Fund purchased a significant stake in the Elon Musk-led company earlier this year. The PIF’s stake is expected to comprise between 3% and 5% of Tesla’s shares, in what could be seen as yet another bold bet by Saudi Arabia Crown Prince Mohammed bin Salman.
News of the Saudi PIF’s position in Tesla was reported by the Financial Times, citing people with direct knowledge of the matter. The position is estimated to be worth $1.7 and $2.9 billion considering Tesla’s current share price, making the Saudi Crown Prince’s fund as one of Tesla’s biggest investors. Data from Bloomberg estimates that the Saudi PIF currently stands as one of the company’s top eight shareholders.
The Saudi PIF has reportedly attempted to take a stake in Tesla for some time, with the fund approaching Elon Musk to express its interest in buying newly-issued shares of the electric car maker — an offer reportedly declined by Musk. Nevertheless, the PIF was still able to take a stake in the company in secondary markets with the assistance from JPMorgan. The FT’s sources claim that Elon Musk and Tesla are aware of the Saudi PIF’s stake in the company.
The PIF’s interest in Tesla is quite understandable, with the fund being linked to several sustainable energy initiatives. In his visit to the United States, Crown Prince Mohammed and SoftBank founder Masayoshi Son announced a project aiming to create the world’s largest solar power generation project, which is expected to cost around $200 billion. If any, the PIF’s stake in Tesla appears to be part of the Crown Prince’s attempts to steadily direct his country’s economy away from its reliance on fossil fuels.
News of the Saudi PIF’s position in Tesla was reported by the Financial Times, citing people with direct knowledge of the matter. The position is estimated to be worth $1.7 and $2.9 billion considering Tesla’s current share price, making the Saudi Crown Prince’s fund as one of Tesla’s biggest investors. Data from Bloomberg estimates that the Saudi PIF currently stands as one of the company’s top eight shareholders.
The Saudi PIF has reportedly attempted to take a stake in Tesla for some time, with the fund approaching Elon Musk to express its interest in buying newly-issued shares of the electric car maker — an offer reportedly declined by Musk. Nevertheless, the PIF was still able to take a stake in the company in secondary markets with the assistance from JPMorgan. The FT’s sources claim that Elon Musk and Tesla are aware of the Saudi PIF’s stake in the company.
The PIF’s interest in Tesla is quite understandable, with the fund being linked to several sustainable energy initiatives. In his visit to the United States, Crown Prince Mohammed and SoftBank founder Masayoshi Son announced a project aiming to create the world’s largest solar power generation project, which is expected to cost around $200 billion. If any, the PIF’s stake in Tesla appears to be part of the Crown Prince’s attempts to steadily direct his country’s economy away from its reliance on fossil fuels.
