Saudi Interest in Tesla Could Help 'KSA' ETF

It was the tweet heard around the U.S. capital markets last week when Tesla co-founder and CEO Elon Musk announced he was mulling the idea of taking the Palo Alto, California-based company private.

Apparently, it was also the tweet heard around the world as Saudi Arabia’s Public Investment Fund is purportedly one of the suitors vying to get a piece of Tesla, which could be beneficial for one particular ETF–the iShares MSCI Saudi Arabia ETF (NYSEArca: KSA).

elon musk tweet

Musk used Tesla’s company blog as a sounding board for this latest development, citing that Saudi Arabia approached him on more than one occasion.

“Going back almost two years, the Saudi Arabian sovereign wealth fund has approached me multiple times about taking Tesla private,” Musk said in the blog post. “Recently, after the Saudi fund bought almost 5 percent of Tesla stock through the public markets, they reached out to ask for another meeting. That meeting took place on July 31st. … I left the July 31st meeting with no question that a deal with the Saudi sovereign fund could be closed.