Saudi Arabia’s sovereign wealth vehicle, the Public Investment Fund (PIF), has acquired a minority stake in electric car manufacturer Tesla, according to reports.
It stake is believed to be just below 5% of Tesla shares and worth in excess of $2 billion based on current valuations.
Tesla’s share price has been volatile of late, due to reports it will delist. Last week shares rose by 8.5% to a four-year high after founder Elon Musk tweeted that he would take the company private at $420 per share and that he had “funding secured”.
The share price has since fluctuated as investors have questioned how Tesla would source the capital needed to withdraw Tesla from listed markets. US regulators have meanwhile examined the legality of Musk’s tweets.
While $2 billion from the PIF would be a welcome source of funding, Tesla would still need to embark on the biggest leverage buyout in US history to become a private company again.
The PIF, which is estimated to be worth more than $250 billion in assets, also has a stake in online taxi firm Uber having earmarked technology stocks as a strategic focus for investment.
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