Various tech and business analysts are calling out Elon Musk on just how “secured” his funding for a potential deal to take Tesla private again actually is.
Last week, billionaire tech mogul Elon Musk tweeted that he was “considering taking Tesla private at $420,” ending the brief message with a simple but profound two-word statement: “funding secured.” Less than a week later, Musk has walked back the audacious claim in a blog post where he said he had “no doubt” that Saudi Arabia’s Public Interest Fund would bankroll the deal.
The collective reaction was… less than impressed:
— William D. Cohan (@WilliamCohan) August 13, 2018
— Christian May (@ChristianJMay) August 13, 2018
Musk took 6 days to clarify that "funding secured" actually means the funding was not secured. https://t.co/QYhKZoKJPG
— Steve Kovach (@stevekovach) August 13, 2018
1. I met the Saudis
2. They have lots of cash
3. "funding secured"
— zerohedge (@zerohedge) August 13, 2018
On Tesla going private, Elon Musk seems to admit he doesn't have 'funding secured' https://t.co/wmW3xOKRbJ
— Michael Hiltzik (@hiltzikm) August 13, 2018
It is now abundantly clear that Elon Musk does not have 'funding secured' https://t.co/jMqVEg0PYF
— Business Insider (@businessinsider) August 13, 2018
I got an email from the Saudis yesterday (still unread), which I'm just assuming was a Riskalyze deal at $1 billion. Funding secured.
— Aaron Klein (@AaronKlein) August 13, 2018
Several pundits came up with colorful analogies to illustrate the weakness of Musk’s position:
Kind of as I suspected. Elon Musk‘s “funding secured” claim is like saying I got the mortgage for that $6 million Lake Minnetonka place because my neighbor the mortgage broker said it sounded good when we talked at the block party https://t.co/b0TZ8vaZp4
— Lee Schafer (@LeeASchafer) August 13, 2018
— Carleton English (@carletonenglish) August 13, 2018
And potential legal fallout with the Securities and Exchange Commission (SEC) remains a continuing theme:
— Thomas Farley (@ThomasFarley) August 13, 2018
1st on Cheddar: Reaction to Elon Musk's blog post from @willchamberlain– "It was almost a confession that he committed securities fraud." Attorney Reed Kathrein @ClassActionLaw: "This is exactly how you would respond. … It's pretty clear that funding was not secured." $TSLA pic.twitter.com/NP94InBf5h
— Hope King (@lisahopeking) August 13, 2018