Elon Musk's SpaceX could help fund take-private deal for Tesla, says report

The New York Times report says another possibility under consideration is that SpaceX would help bankroll the Tesla privatization and would take an ownership stake in the carmaker

Elon Musk’s rocket company, SpaceX, could help fund a bid to take electric car company Tesla private, The New York Time reported on Thursday, quoting people familiar with the matter.
 

Musk startled Wall Street last week when he said in a tweet he was considering taking the auto company private for $420 per share and that funding was “secured.” He has since said he is searching for funds for the effort.
 

Musk said on Monday that the manager of Saudi Arabia’s sovereign wealth fund had voiced support for the company going private several times, including as recently as two weeks ago, but also said that talks continue with the fund and other investors.
 

The New York Times report said another possibility under consideration is that SpaceX would help bankroll the Tesla privatization and would take an ownership stake in the carmaker, according to people familiar with the matter.
 

Musk is the CEO and controlling shareholder of the rocket company.

Tesla and SpaceX did not respond when Reuters requested comment on the matter.
 

In a wide-ranging and emotional interview with The New York Times published late on Thursday, Musk, Tesla’s chief executive, described the difficulties over the last year for him as the company has tried to overcome manufacturing issues with the Model 3 sedan.
 

“This past year has been the most difficult and painful year of my career,” he said. “It was excruciating.” The loss-making company has been trying to hit production targets, but the tweet by Musk opened up a slew of new problems including government scrutiny and lawsuits.

The New York Times report said efforts are underway to find a No. 2 executive to help take some of the pressure off Musk, people briefed on the search said.
 

Musk has no plans to relinquish his dual role as chairman and chief executive officer, he said in the interview. 

Musk said he wrote the tweet regarding taking Tesla private as he drove himself on the way to the airport in his Tesla Model S. He told The New York Times that no one reviewed the tweet before he posted it. He said that he wanted to offer a roughly 20 per cent premium over where the stock had been recently trading, which would have been about $419. He decided to round up to $420 - a number that has become code for marijuana in counterculture lore, the report said. “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.