Oracle’s Ellison reveals $1-billion stake in Tesla

Lloyd Doyle
January 9, 2019

Oracle founder Larry Ellison has disclosed a holding worth $1 billion in Tesla after being appointed to the company's board in December. Musk courted controversy in 2018, prompting the Securities and Exchange Commission to order greater board oversight after he tweeted in August that he had financing and investor support for a buyout at $420 a share. At current market prices, Ellison's stake is likely somewhere near 3 million shares of the EV automaker.

Ellison's revelation comes as Tesla emerges from a rough patch.

Then, despite blasting the SEC again via Twitter only a few days prior, it was announced on the first day of October past year that Musk would stay on as CEO - only this time with two additional independent directors sitting on his board; an attempt to wrangle in the eccentric CEO as envisioned by officials at the SEC.

The SEC accused Musk of intentionally making "false and misleading" statements about Tesla's privatization plans. Both he and the company agreed to pay US$20 million penalties and added Ellison and human resources specialist Kathleen Wilson-Thompson as board members.

Ellison is the world's sixth richest man according to Forbes and was often cited as a major investor in Tesla. That would put Musk's total stake in the company at a value of roughly $11.3 billion.

Tesla shares were trading 0.9 percent higher at $338 million in the pre-market in NY, giving a market value of $58 billion.

Ellison said Tesla was his second-largest investment in October without being more specific. He criticized how the news media had covered Musk, whom he lauded for landing rockets and called a close friend.

Tesla's press office didn't immediately respond to an e-mail requesting comment on Ellison's holding.

Other reports by Iphone Fresh

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