Musk has not offered evidence that he has lined up the necessary funding to take Tesla private, and the complaints did not offer proof to the contrary.
Saudi Arabia's sovereign wealth fund is in talks that could see it becoming a significant investor in Tesla as part of Elon Musk's plan to take the electric auto maker private, according to people with knowledge of the fund's plans.More news: Juventus' Champions League ambition greater for Cristiano Ronaldo arrival - Massimiliano Allegri
Since Musk first tweeted on Tuesday that he was considering taking Tesla private at $420 a share and that he had "funding secured", he's offered no evidence to back up the statement.
Discussions over taking Tesla private have failed before.
SoftBank Group Corp., the Japanese conglomerate that has been touted as a potential source of capital for a buyout of the carmaker, isn't planning to participate in such a deal, according to people with knowledge of the matter. That has led to inquiries by the Securities and Exchange Commission into the situation and now two class-action lawsuits by investors who USA Today reported contend the company violated federal securities laws via the tweets. Finally, one of PIF's key goals is to diversify Saudi Arabia's wealth away from oil, and the fund already made numerous investments in technology and energy companies, including a $400 million investment in Magic Leap and a $3.5 billion investment in Uber. While the entrepreneur owns 20 per cent of Tesla, more than US$60 billion would be needed to buy the business from public shareholders.More news: Omarosa Secretly Recorded John Kelly Firing Her
According to the report, which cites people with knowledge of PIF's plans, the fund is working to be a part of "any investor pool that emerges" to take Tesla private.
As the intrigue enters a second week, with pressure increasing on the billionaire founder to explain how a deal would be funded, one of the world's most active investors has already ruled itself out.
The question of privatisation is still carrying on in financial circles, but for those outside the Wall Street bubble the episode is a timely reminder: When you're as big as Musk, Twitter can be an expensive habit. Tesla did not respond to a request for comment.More news: There's been a lot of talking - Sterling explains Arsenal goal celebration