Elon Musk will likely need clearance from U.S. national security officials for any proposal to take Tesla Inc. private with financing from Saudi Arabia, just as the Trump administration steps up scrutiny of foreign investment in American technology.
The deal, if it becomes reality, would be among the first to be reviewed by U.S. officials since President Donald Trump signed legislation this week that expands the government's authority to investigate and potentially block foreign takeovers of domestic companies.
While many of the law's provisions don't take immediate effect, the measure underscores the administration's intent to use the Committee on Foreign Investment in the U.S., known as CFIUS, to heighten scrutiny of foreign acquisitions.