Norway's Wealth Fund Issues Savage Burn On Tesla

Matt Posky
by Matt Posky
norway s wealth fund issues savage burn on tesla

Save for some uplifting production news, Tesla Motors is still fighting an uphill battle. CEO Elon Musk’s earlier claim that the company would go private has gotten him into trouble with the Securities Exchange Commission — since it looks as if the automaker hasn’t procured the necessary funding to make that happen.

However it doesn’t appear as if Norway’s sovereign wealth fund will be the outlet to pick up that tab. Trond Grande, deputy CEO of the Norwegian fund, declined to say whether Tesla had approached the fund about going private. “We don’t have a view on that,” he said before adding “We want to be invested in companies that make money.”

That savage burn, reported by Bloomberg, sounds pretty definitive. If Tesla hasn’t approached Norway already, it certainly isn’t going to now.

Norway is Tesla’s third-biggest market and the country’s wealth fund is the world’s largest. It currently holds a 0.48 percent stake in the automaker worth about $253 million. Assuming Tesla goes private, the fund is likely to sell off its shares as standard protocol. But it’s legally allowed to stay invested if it wants.

“The priority is to try to preserve the value for the fund. That is the priority,” Grande said. “If that means that the fund will be invested in a company that has been delisted for a period of time, that could happen … But as a main rule, we will exit the investments as and when, or soon after, it has been taken off an exchange.”

In March the fund voted against Musk’s potential $2.6 billion payout. It also backed an initiative to have Musk removed as chairman in June, and supported one would have allowed investors to nominate their own directors.

That’s likely of little consequence to Elon at the moment, though. The SEC appears to have opened an inquiry related to Musk’s tweets about privatization and that’s likely weighing heavier on his mind right now. The company’s stock has also taken a serious hit.

[Image: Tesla]

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  • Kosmo Kosmo on Aug 22, 2018

    Gotta love Norway with its huge subsidies for Tesla ownership. Funded by Norway's Wealth Fund. Which is funded by North Sea oil revenues.........

  • Felix Hoenikker Felix Hoenikker on Aug 23, 2018

    Yes, Elon is a nut case, but the product is real. I had lunch with an ex coworker two weeks ago. As we were leaving he showed me his new car - a white Tesla Model 3. Naturally we went for a spin up and down US 1 near Woodbridge, NJ. The performance of the 3 blew my socks off. I am a big fan of quiet power, and this thing is almost silent, and really fast especially from a stop. I never expected this kind of acceleration from a BEV passenger car. Now long term durability is another issue. Too early to tell, but out of the box the 3 is quite impressive to drive. At $50K it's a little pricey for my tastes for a commuter car, but I could see $35K when production catches up with demand or battery prices keep dropping.

  • ToolGuy CXXVIII comments?!?
  • ToolGuy I did truck things with my truck this past week, twenty-odd miles from home (farther than usual). Recall that the interior bed space of my (modified) truck is 98" x 74". On the ride home yesterday the bed carried a 20 foot extension ladder (10 feet long, flagged 14 inches past the rear bumper), two other ladders, a smallish air compressor, a largish shop vac, three large bins, some materials, some scrap, and a slew of tool cases/bags. It was pretty full, is what I'm saying.The range of the Cybertruck would have been just fine. Nothing I carried had any substantial weight to it, in truck terms. The frunk would have been extremely useful (lock the tool cases there, out of the way of the Bed Stuff, away from prying eyes and grasping fingers -- you say I can charge my cordless tools there? bonus). Stainless steel plus no paint is a plus.Apparently the Cybertruck bed will be 78" long (but over 96" with the tailgate folded down) and 60-65" wide. And then Tesla promises "100 cubic feet of exterior, lockable storage — including the under-bed, frunk and sail pillars." Underbed storage requires the bed to be clear of other stuff, but bottom line everything would have fit, especially when we consider the second row of seats (tools and some materials out of the weather).Some days I was hauling mostly air on one leg of the trip. There were several store runs involved, some for 8-foot stock. One day I bummed a ride in a Roush Mustang. Three separate times other drivers tried to run into my truck (stainless steel panels, yes please). The fuel savings would be large enough for me to notice and to care.TL;DR: This truck would work for me, as a truck. Sample size = 1.
  • Art Vandelay Dodge should bring this back. They could sell it as the classic classic classic model
  • Surferjoe Still have a 2013 RDX, naturally aspirated V6, just can't get behind a 4 banger turbo.Also gloriously absent, ESS, lane departure warnings, etc.
  • ToolGuy Is it a genuine Top Hand? Oh, I forgot, I don't care. 🙂