Larry Ellison, the Founder of Oracle Corporation, has acquired 3 million shares in Tesla worth $1 billion to become its second largest individual shareholder after Founder and CEO Elon Musk. Larry is also the newest board member of the electric car company.
The investment, which was confirmed by Tesla in a regulatory filing, gives Larry 1.75 percent stake in the company. Larry made his investment through the Lawrence J Ellison Revocable Trust.
Featuring in the Forbes Billionaires 2018 List as the 10th richest person in the world, Larry has a net worth of $58.5 billion and has been open about his love for Tesla and its founder. Reports suggest he has been building his personal stake in the company over the last three months, and has been a vocal critic of the media for maligning Musk.
Musk ran into trouble in 2018 when he tweeted that he had enough support for his share prices to rise. This tweet created ripples in the market, and the Securities and Exchange Commission called Musk’s claims false and misleading.
Larry Ellison has since then come out in support of Elon Musk and has called him a close friend. Nevertheless Musk had to pay millions – sources say $20 million – in the form of penalties to the SEC. The electric automaker has also faced criticism recently for not fulfilling orders.
Analysts say the coming of Ellison on to the Tesla board will set things right for the electric carmaker in 2019 in terms of governance. Elon Musk now has endorsement from one of the world’s most well respected entrepreneurs, which is sure to boost Tesla’s image.