Volkswagen Reportedly Stepped Up To Take Tesla Private
Electric car maker Tesla will remain a public company after two weeks of rollercoaster speculation. However, the details behind alleged suitors have trickled out. Among them was German automaker Volkswagen.
The Wall Street Journal reported Monday VW stepped up to help take Tesla private, per the company’s CEO Elon Musk’s direction. Musk delivered his intention to take Tesla private via a Tweet nearly three weeks ago and said funding was secured to make the deal happen once shares reached $420.
Previous rumors pegged the sovereign Saudi Arabian wealth fund as the main funder for Tesla, but both Musk and the fund reportedly cooled talks. Musk was rumored to be skeptical of an oil state holding stake in the electric-car maker. No formal offer was ever proposed, according to the report.
ALSO SEE: Tesla CEO Elon Musk Announces Company Will Remain Public
VW was then allegedly on deck, along with Silver Lake, a private-equity firm. Both entities were said to propose $30-billion combined to take Tesla private, according to the report’s sources. However, Musk again dwelled on relinquishing some control of the company to its latest investors. Additionally, he was wary of other automakers eager to capitalize on the “Tesla halo.”
Last Thursday, Musk reportedly had doubts about funding for taking Tesla private. On Friday, he announced the company would remain public. And the issue brings the Tesla chief back to trying to solve the company’s major issue at hand: it needs cash, and it needs it quickly.
This article originally appeared on HybridCars.com
More by Sean Szymkowski
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#DIESELGATE Never forget, I certainly won't. VW company will never see my hard earned money either. Ashame actually, because I happen to love Audi design.