(Reuters) - Elon Musk’s rocket company, SpaceX, could help fund a bid to take electric car company Tesla Inc (TSLA.O) private, the New York Times reported on Thursday, quoting people familiar with the matter.
FILE PHOTO: Elon Musk, founder, CEO and lead designer at SpaceX and co-founder of Tesla, speaks at the International Space Station Research and Development Conference in Washington, U.S., July 19, 2017. REUTERS/Aaron P. Bernstein
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. nyti.ms/2vOkgeM
“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
