The revelation came after Musk claimed in an August 7 Twitter post that financing for a deal to take Tesla private had been "secured."
Musk said in a blog post on Monday he had "no question" that the Saudis would finance such a transaction following a July 31 meeting.
"I continue to have discussions with the Saudi fund, and I also am having discussions with a number of other investors, which is something that I always planned to do since I would like for Tesla to continue to have a broad investor base," Musk wrote.
"It is appropriate to complete those discussions before presenting a detailed proposal to an independent board committee."
The transaction would be structured with equity so as not to burden Tesla with crushing debt, Musk added.
Musk's surprise comments last week sparked speculation he would need to borrow massive amounts to take Tesla private, a move that could allow the company to operate without requirements for financial reports and other pressures of a publicly traded firm.
But the comments also raised questions about whether Musk ran afoul of securities laws by claiming backing without a firm financial commitment.
The disclosures about Saudi interest "helps reduce the legal risk fallout for Tesla," said Efraim Levy, an equity analyst at CFRA Research.
"It also helps clarify the going private situation even if the transaction is ultimately not consummated."
But Levy said taking the company private would be a mixed blessing for Tesla and Musk -- the company could avoid short-term pressures from Wall Street but also reduce its access to capital markets.
"They've had significant benefits from having access to capital markets, and the media attention has provided priceless free advertising," Levy said.
"Despite Musk protestations, we think remaining public has and will benefit Tesla," he added.
Tesla shares failed to sustain an early surge and ended with a small gain of 0.26 percent at $356.41.
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