>> Tesla CEO, Elon Musk, trying to clarify his plan to take the electric car company private and where he believes the money will come from. Reuters Tesla watcher Alexandria Sage, is on the story.>> What he revealed on Monday in a blog post was he held a meeting in July with the Saudi Sovereign Wealth Fund.
And he left with no question that a deal could be closed. However, he said it would be just a matter of time to have finalized details. This is why he tweeted funding secured. Whether this is enough to appease regulators is another question.>> The surprise tweet last week is being scrutinized by the Securities and Exchange Commission, which is reportedly asking for more information on why such important company news was revealed via Twitter in the first place.
Some securities lawyers are calling the tweet and lack of an official disclosure, a lapse in corporate governance. Discrepancies surrounding the potential deal causing investor paralysis, the stock barely moving Monday. Musk says he's talking to other potential investors, as well as the Saudis, about funding. But sources familiar with thinking inside Saudi Arabia's Public Investment Fund, claim the fund doesn't have any interest in helping to provide funding for the plan, at least for now.
>> The other open question is how existing shareholders would be able to participate in such a deal. Elon Musk has said that he wants to keep existing shareholders with a piece of Tesla, but it's absolutely unclear how a private company could accommodate this.>> Musk's next step, meet with investors and advisers to come up with a range of options to end Tesla's days as a publicly traded company.