Tesla will remain public, Elon Musk says

Tesla will remain public, Elon Musk says

August 25, 2018 0 By Nazmul Khan


Tesla will remain a public company, Elon Musk said in a blog post on the company website. He attributed the decision to shareholder sentiment. “Although the majority of shareholders I spoke to said they would remain with Tesla if we went private, the sentiment, in a nutshell, was ‘please don’t do this,’” Musk wrote.

Musk said he was advised by Silver Lake, Goldman Sachs and Morgan Stanley on the possibility of going private. He described the process of taking Tesla private as “even more time-consuming and distracting than initially anticipated.” That would serve as a distraction from increasing production on the Model 3, which is part of Musk’s plan for Tesla to become profitable. Musk also said in the post that the process of exploring his options reinforced his belief that “there is more than enough funding to take Tesla private.”

On August 7, Musk tweeted he was “considering taking Tesla private at $420.” A great deal of speculation followed, and the stock price fluctuated. Musk has previously said — on more than one occasion — he prefers private companies to public companies. But the path to going private wasn’t entirely clear; Musk wanted to keep his shareholders aboard though it wasn’t obvious how to structure such a transaction. Part of Musk’s motivation for staying public, he said in the post, was that his institutional shareholders had “compliance issues” when it came to investing in public companies.

This is a breaking story and will be updated.



Source link