It's raining problems for Elon Musk. After courting controversy with his eccentric behaviour in the last couple of months, Musk has now lost out on a plumb investment opportunity which has added to Tesla's setbacks.
A report published in CNBC states that Musk's expectations that the Saudi Arabian wealth fund would invest in Tesla, thereby helping to privatise the company, fell short as the country decided to invest $1 billion in Tesla's rival organisation, Lucid Motors.
The investment is being seen as the support provided to help Lucid Motors launch its first electric vehicle commercially in 2020. In this regard, Musk had created another controversy as he spoke about how the company had bagged the funding it needed in order to privatise.
In his blog, Musk had noted, "Going back almost two years, the Saudi Arabian sovereign wealth fund has approached me multiple times about taking Tesla private. Recently, after the Saudi fund bought almost 5% of Tesla stock through the public markets, they reached out to ask for another meeting.
That meeting took place on July 31st. I left the July 31st meeting with no question that a deal with the Saudi sovereign fund could be closed." However, eventually, the privatisation plans were scrapped, though the latest development has, no doubt, struck a heavy economic blow. As it stands, the company's shares plummeted by around 2% when the stock markets opened on Monday.