Saudi Arabia has reportedly secured insurance for its investment in Tesla, which has dramatically reduced its net exposure to the stock. Just months after CEO Elon Musk claimed that the kingdom was ready to negotiate a deal to privatize the electric car maker. 19659002] div> div.group> p: first child "/>
In September, Musk ruled on allegations of fraud against the Securities and Exchange Commission. He agreed to step down as chairman of Tesla, paid a $ 20 million fine and appointed new board members. The Financial Times reports that it has secured almost its entire 4.9 percent stake in Tesla. This means that the PIF continues to hold the shares, but has taken other positions that protect them from a fall in the price of Tesla.
The Financial Times revealed PIF involvement in August. Almost immediately, Musk tweeted that he had secured private financing for Tesla for $ 420 a share. Later he stated that the Saudis would support the purchase. Later, the SEC accused the statements were "false and misleading".
According to the Financial Times, PIF used the hedging measures after the market closed on January 1
Elon Musk told the FT that for months there has been no communication with the PIF and they do not know if the kingdom still holds the stock. The PIF and J.P. Morgan rejected the FT's offer for comment.
The Tesla share initially fell more than 2 percent in the FT report, but stocks did not change much at 1pm. ET.
While Saudi Arabia is the world's largest exporter of oil, its investment in electric car pioneer Tesla is part of the ambition of Crown Prince Mohammed bin Salman to diversify the nation's economy. PIF has become a major investor in technology companies under Prince Mohammed.
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