Musk's tweets put Tesla in the spotlight — Business Extra Podcast

Tesla CEO Elon Musk

Tesla CEO Elon Musk

Tesla's stock fell as much as 4% after reports that USA regulators had sent the company subpoenas as they ramp up investigations into its plans to go private.

A Wall Street Journal story published after the stock market closed said the subpoena sought information from each of Tesla's directors.

Regardless of whether Tesla does go private, it's unlikely to do so before its third-quarter earnings call in November when Musk may face more questions about the lawsuits, funding to go private, Tesla production, and any SEC investigation.

They include images he says are of battery scrap, trailers containing battery waste, and documentation of punctured battery parts in Model 3 vehicles.

In late June, Tesla reached another milestone: its Model 3 sedan cracked the top 10 list for best-selling passenger cars for the month of July.

A Tesla sales and service center is shown in Costa Mesa, California, U.S., June 28, 2018.

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He explains how representatives from the Saudi Arabian sovereign wealth fund - already holding a $2 billion stake in Tesla - have been pushing him to take the company private for nearly two years, promising to financially back such a move.

Bloomberg cited lawyers as stating even before the new law passed on Monday a major investment in Tesla by Saudi Arabia would have drawn scrutiny.

The "Saudi sovereign fund has more than enough capital needed to execute on such a transaction", he suggested. Assets owned by the PIF can not be monetized quickly without driving down prices in the local stock market, while selling many of them would conflict with another of the PIF's declared roles. The company probably will need approval of US national security officials if Saudi Arabia finances the effort to take the company private, and President Donald Trump's administration has been stepping up scrutiny of foreign investment in American technology.

In the meantime, Tesla's board is trying to mitigate the damage, according to the New York Times.

Elon Musk said Monday on Twitter that he is working with Goldman and the investment firm Silver Lake on his proposal to take Tesla private. However, as of August 14, Goldman was still negotiating its terms of engagement with Musk, according to a person familiar with the matter.

Meanwhile, Tesla's board has formed a three-person committee to assess a potential buyout by Musk while leaving the door open for other offers, too.

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