Larry Ellison, Founder of Oracle Corporation (NYSE:ORCL), announced the acquisition of a higher stake in Tesla Inc (NASDAQ:TSLA) for $1 billion. He has become the second largest investor in Tesla after Elon Musk, Chief Executive Officer. It is evident from the recent regulatory filing.
Ellison Stake in Tesla is 3 million
The stake of Ellison in Tesla now increases to three million. It accounts for 1.75% stake in the company. Ellison is elevated to the board directors of Tesla. CEO owns a stake of 5% in Tesla.
One of the most valuable auto manufacturers in the world, Tesla is emerging from the troubled year. It has been unable to meet the production targets for its famous model 3 sedan. SEC ordered greater board oversight following the tweet of Elon Musk that an investor provided financial support by purchasing shares at $420/ share.
Elon Musk agrees to pay $20 million penalty
The securities and exchange commission believed that claims are Musk is misleading and false and affected the stock of Tesla. Both Musk and Tesla have agreed to remit the penalty of $20 million. The company added Kathleen Wilson Thompson, a human resource specialist, and Ellison to the board of directors. The net worth of Ellison is $51.4 billion. He is the 9th wealthiest person in the world.
Tesla secures low-cost interest loan for Gigafactory 3 in China
The electric car maker signed a deal to purchase 864,885 sq. Meter land in China. Tesla announced securing a low-cost loan from Shanghai banks to go ahead with proposed gigafactory 3 in China. The low-cost financing will help the company to move forward with the construction of battery and an electric car factory.
According to the insider reports, the company plans to produce Model 3 in the factory. It will have production facilities for final assembly of the Model X and Model S vehicles. The new plant in China will help Tesla to save on import taxes and sell the premium vehicles at reduced rates in the Chinese market. Over the past 12 months, Tesla has been making steady progress in the foundation of gigafactory and with the support of the Chinese government.