Elon Musk's Tweet Over Tesla Leaves Banks Wondering Over "Secure" Funding

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New York: 

Tesla chief executive Elon Musk got into legal hot water this week after announcing on Twitter he had sufficient financing already in hand to take the electric automaker private.

Many in US financial circles are wondering where he will he get all this money, and have turned skeptical despite the reverence in which they normally hold Musk, who founded the company in 2003 to transform cars into tech marvels.

The transaction could amount to at least $50 billion if Musk keeps his 20 percent stake in the company.

On Tuesday, the irascible entrepreneur tweeted that funding for the transaction at $420 a share had been “secured,” but offered no proof or documentation.

A classic way of de-listing from stock markets is a leveraged buyout, a deal in which investors purchase a company’s equity and finance this with loans.

But none of the six major US banks has offered to lend the necessary…

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