PIF in talks to become 'significant' investor in Tesla: report

Saudi Arabia’s Public Investment Fund (PIF) is in talks to become a "significant" investor in Tesla as part of Elon Musk’s proposal to take the electric car maker private, Bloomberg reported, citing a person with direct knowledge of the fund’s plans.

The Kingdom's sovereign wealth fund, which has built up a stake of nearly 5 percent in Tesla, is exploring how it can be involved in the potential deal.

Discussions began before the August 7 tweet by Musk, Tesla’s co-founder and chief executive officer, saying he was "weighing a plan to take the company private,” the report said.

The PIF sees its investment in Tesla as a strategic way for the world’s biggest crude producer to hedge against oil, the news agency quoted the unnamed source as saying.

The Saudi fund hasn’t made any firm decisions on whether to increase its stake, or by how much, but talks are ongoing.

Last Saturday, Reuters reported that the PIF had shown "no interest so far" in financing Musk’s proposed deal.