RPT-Tesla says not affected by CEO’s divorce dispute

(Repeats to additional subscribers)

By Poornima Gupta

SAN FRANCISCO, June 2 (BestGrowthStock) – Electric carmaker Tesla
Motors said on Wednesday it does not expect the contentious
divorce of its chief executive, Elon Musk, to affect its plans
to list its shares and does not rely on him to provide further
funding.

The California start-up, in a filing with U.S. securities
regulators, sought to distance itself from a divorce dispute
between Musk and his estranged wife that has cast a shadow over
what had been one of the most anticipated IPOs of the year.

“We do not believe that Mr. Musk’s personal financial
situation has any impact on us,” the company said in the
Securities and Exchange Commission filing.

Musk’s estranged wife, Justine Musk, is seeking 10 percent
of her husband’s stake in the carmaker in a contentious divorce
case. [ID:nN14158758].

Musk has also said in court documents relating to the
divorce that he was out of cash and lived off loans from
friends.

The case could complicate plans by Musk to take Tesla
public and retain $465 million of U.S. Department of Energy
funding to launch a mass-market electric car named Model S as
the government loan could be in default if Musk does not hold
enough of the stock.

A Tesla spokesman said he could not comment beyond the SEC
filing.

In the amended filing, Tesla said that while Musk has
provided “significant” funding for the company in the past, it
has not received any money from the CEO in the past year.

“We have not received any funding from Mr. Musk for the
past 12 months and are no longer dependent on the financial
resources of Mr. Musk to fund our expected growth given the
funds available under DOE loan facility and the expected
proceeds of this offering,” it said in the filing.

Tesla added that it also does not expect the divorce
proceeding to result in any large reduction of the company
shares he owns.

“We also do not believe that Mr. Musk would have to
liquidate a significant percentage of his holdings in order to
satisfy any settlement reached in connection with such
proceedings,” according to the filing.

Musk is the co-founder and largest shareholder of the
electric car start-up, with more than 81 million shares.

Tesla said the CEO’s shares of its capital stock are held
directly by his personal trust

In a blog post last month jokingly titled “Golddigger,”
Musk’s estranged wife, an author of supernatural thrillers,
laid out what she called “the extent of my golddigging.” Apart
from the Tesla stock, she wants 5 percent of his stake in space
exploration company SpaceX, alimony and support for their five
children.

Elon Musk claims he is cash poor and has to get “emergency
loans from personal friends,” according to court documents
posted on technology blog VentureBeat website.

“About four months ago, I ran out of cash,” he said in the
document, which was filed on Feb. 24. “These loans are the
exclusive source of cash that I have.”

Investing Research
(Reporting by Poornima Gupta; Editing by Steve Orlofsky)

RPT-Tesla says not affected by CEO’s divorce dispute