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:
Not even close to “funding secured” @elonmusk https://t.co/DWAsO8KRTm
— William D. Cohan (@WilliamCohan) August 13, 2018
Elon Musk statement on his notorious "funding secured" tweet. In a nutshell: funding not secured. https://t.co/j9gqEXk0Gw Those law suits are stacking up: https://t.co/p2F5BaqoMa
— Christian May (@ChristianJMay) August 13, 2018
https://twitter.com/stevekovach/status/1029002762456055810
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
https://twitter.com/AaronKlein/status/1029027058582609920
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
This "funding secured" explanation feels a little like a chick going on so-so first date and booking the wedding venue on the Uber ride home. $TSLA https://t.co/uRKWoTvVzw pic.twitter.com/UixxpjazUs
— Carleton English (@carletonenglish) August 13, 2018
And potential legal fallout with the Securities and Exchange Commission (SEC) remains a continuing theme:
I suspect that @SEC_News required Tesla to clarify. We now know that funding was not secured in any way whatsoever. Why did it take six days? https://t.co/OXOe9Q86iY
— 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
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