Tesla board says it will assess plan to go private

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The Saudi sovereign fund already owns about 5 percent of the outstanding Tesla shares, Musk said. It also has hired an independent legal counsel and will engage a financial adviser.

Mashable Tech Editor Pete Pachal on the fallout from Tesla CEO Elon Musk's tweet about potentially taking the company private.

Musk said he anticipates that most Tesla shareholders would remain invested in the company if it were to go private, and that reports of a $70 billion buyout are inflated.

The SEC is looking into whether Musk's initial announcement broke a rule preventing public companies from announcing such major financial plans if they don't intend to see them through, don't have financing secured, or are blatantly trying to manipulate the stock price.

He said that since his Twitter posts on the possibility of a deal the managing director of the Saudi fund had expressed support for proceeding subject to financial and other due diligence.

Musk released a statement on Tesla's blog and wrote the sovereign wealth fund of Saudi Arabia approached him multiple times in the last two years to discuss taking Tesla private.

Yasir Othman al-Rumayyan, managing director of the PIF, referred Reuters to the corporate communications team, which did not immediately respond to a request for comment.

Musk said he will "continue to talk with investors" as he looks into taking the automaker private.

That tweet may have created a sticky situation for Musk as it appears the funding may not be locked up just yet.

A link between Musk's tweet and the Saudi involvement was soon made as the CEO's announcement ended with the "funding secured" phrase.

Tesla CEO Elon Musk's elaboration on his plan to engineer a buyout of the electric vehicle maker could get the Silicon Valley maverick into legal trouble by revealing that the deal is far more uncertain than how he initially described it in his brash tweet last week.

"No assurances can be given regarding the likelihood, terms and details of any proposal or potential going private transaction, that any proposal made by Mr. Musk. will be accepted by the special committee", the statement said.

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