The Volkswagen Group is thought to have been one of the investors which could have seen Tesla go private.
In a premature tweet published on August 7, Elon Musk claimed to have the funding secured to take Tesla private at $420 a share. That couldn’t have been further from the truth. In the ensuing weeks, the automaker hurriedly put together a team to see if the money could be found to go through with the plan.
The Wall Street Journal reports that a move to take Tesla private would have necessitated a buyout of the technology mutual funds that hold considerable stakes in the car manufacturer. Bankers for Musk lined up Volkswagen, alongside others, to potentially offset the loss of these mutual funds.
Musk believes Tesla’s value with soar
In a matter of days, a proposal was made to Musk that included a heap of investors, including Volkswagen and Silver Lake, that had agreed to contribute as much as $30 billion to take Tesla private.
The outspoken chief executive wasn’t all that thrilled with the proposal as he would have had to relinquish some control in the company. He was also reportedly wary of rival automakers taking a share in Tesla.
Late last week, Musk made the call for keeping Tesla public on the back of pressure from existing investors and his belief that it’s the best path forward.
“In my opinion, the value of Tesla will rise considerably in the coming months and years, possibly putting any take-private beyond the reach of any investors. It was now or perhaps never,” Musk explained in an email to The Wall Street Journal.
