Days after Tesla CEO took the auto industry by storm with his plans of taking the EV manufacturing giant private, he now might have hinted at the reason behind such a decision.

In his blog post on Monday, Musk stated he had planned to take the company private at a rate of $420 per share which was 20 per cent premium over the current share price of nearly $350 (at the time of the announcement). He stated that his proposal was based on the structure where any existing shareholder who chose to remain as a shareholder in a private Tesla could do so.

Explaining his real intent behind the move, Musk explained that about two years ago he was approached multiple times by the Saudi Arabian sovereign wealth fund to take Tesla private.

Explaining his real intent behind the move, Musk explained that about two years ago he was approached multiple times by the Saudi Arabian sovereign wealth fund to take Tesla private.

In his statement, he stated that they had approached him as they felt it was ‘important to diversify away from oil’. In the years after that, Musk states that they held several meetings in order to proceed with the transition. ” Obviously, the Saudi sovereign fund has more than enough capital needed to execute on such a transaction.” Musk said in his statement.

In the most recent meeting that was held on July 31 after the Saudi fund bought 5 per cent of Tesla’s stock through public markets, the MD of the fund expressed regret for not proceeding with taking Tesla private and that he had strongly expressed interest in funding the company’s transition.

Now that the move has been confirmed by the company as well as the board members, Musk, has said that the Saudi fund has asked for additional info about the company in order to initiate the funding for the transition.

Now that the move has been confirmed by the company as well as the board members, Musk, has said that the Saudi fund has asked for additional info about the company in order to initiate the funding for the transition.

He added that in the coming days, he would be talking to the Saudi funds as well as other potential investors about other possible structures and options of implementing the transition.

Elon Musk also slammed several reports which suggested that more than $70 billion was needed for the company’s transition. In this regard, Must stated that the expenditure would be rolling back shares of people who would not want to be a part of private Tesla which he estimated to be two-thirds of the company’s shares.